Home Finance Coinbase Struggles To Become A Regulated Securities Company

Coinbase Struggles To Become A Regulated Securities Company


Coinbase crypto exchange platform announced that it’s making advancements towards its goal to become a federally regulated broker-dealer.

President and chief operating officer Asiff Hirji posted on the company’s blog that they are in the process of acquiring a broker-dealer license which is an alternative trading system license and a registered investment advisor license.

Coinbase wants to offer blockchain-based securities 

After it manages to get these licenses, the firm plans to seek approval from the U.S. Securities and Exchange Commision SEC and the Financial Industry Regulatory authority FINRA to offer blockchain-based securities.

This whole effort includes Coinbase’s acquisitions of Keystone Capital Corp., Venovate Marketplace, and Digital Wealth LLC, according to the blog post.

“We believe this is an important moment for the crypto ecosystem and yet another indication of the maturation of the crypto economy. If approved, these licenses will set Coinbase on a path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products,” Hirji said.

Beyond offering securitized coins, Hirji stated that the exchange could also tokenize the already existing securities products, “bringing to this space the benefits of cryptocurrency-based markets.”

Real-time settlement, transparent chain-of-title, and 24/7 trading

Advantaged would include real-time settlement, transparent chain-of-title, and 24/7 trading.

This comes just weeks after Coinbase revealed that it had acquired decentralized crypto relay platform Paradex and that it was planning to rebrand its GDAX service as Coinbase Pro.

Coinbase has also launched Coinbase Custody which is its crypto storage service that targets mostly large financial institutions. Coinbase Custody includes products aimed at institutional investors.

“We believe this will democratize access to capital markets for companies and investors alike, lowering costs for all participants and bringing additional transparency and inclusion to the ecosystem,” Hirji said, praising the potential of combining cryptos with securities.