- Coinbase has declared that they are likely to debut in the US Stock Exchange market by 2021, as reported by Reuters.
- The crypto platform will most probably release the listing later this year or the next year.
- The process would need approval from the U.S. Securities and Exchange Commission.
Coinbase, the leading digital exchange of the U.S., has declared that they are likely to debut in the US Stock Exchange market by 2021, as reported by Reuters. The crypto platform will most probably release the listing later this year or the next year, but the plans are tentative and could change anytime.
Reuters have confirmed that Coinbase has already started the listing process. However, it is still uncertain as to which exchange venue would facilitate it.
The Listing Procedures Will Require Approval From The SEC
The process would need approval from the U.S. Securities and Exchange Commission. The approval would mark Coinbase’s milestone as a cryptocurrency exchange and a big step towards competing in the mainstream stock market. But, Coinbase disclosed its listing intentions publicly to the SEC yet. Nevertheless, they are still hiring investment banks and law firms, as cited by Reuters. The sources have demanded full anonymity because of the highly confidential listings procedures. Additionally, they have newly hired Paul Grewal as the Chief Legal Officer. o was previously the deputy general counsel in the largest social media company, Facebook.
Coinbase Raised A $8 Billion In Its Latest Private Fundraising in 2018
Coinbase was established in 2012 and is one of the leading cryptocurrency platforms in the U.S., providing transaction options on digital assets. In August of 2017, it had raised almost $100 million and pushed the market capital to $1.6 billion. And with this, it became the crypto industry’s first-ever ‘unicorn.’ Coinbase has more than 35 million users and, in its latest private fundraising venture in 2018, had raised an enormous amount of $8 billion.
Coinbase will go public through a direct listing instead of the customary initial public offering or the IPO. The primary difference between an IPO and direct listing is that in an IPO, new shares are sold. Furthermore, in an IPO, the previous users are allowed to dispose of their holdings without any lock-up restrictions.
The SEC’s Approval Would Mean A Stepping Milestone For Coinbase
The Securities and Exchange Commission has clarified that some cryptocurrency companies might subject to security and held under regulations. But it has yet to release specific guidelines and regulations on the usage and operations of virtual currency.
In the context of mainstream investments, many cryptocurrency companies had to fight hard for their legitimation, mostly because scams take place every day in crypto. However, if Coinbase can make through this and step into the US Stock market, this will be an outstanding achievement in the cryptocurrency industry.