Coinbase on track to start offering securities tokens
Coinbase is on track to open up its range and include securities in the near future.
Coinbase is on track to start offering securities tokens, it announced in a recent blog post. A couple of months ago, it was looking at acquiring an SEC brokerage license as a kind of lightweight alternative to becoming a full-fledged securities exchange, and now the post has said that it's well underway.
Additionally, it's acquiring Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC to help tick the requisite boxes and expand its scope.
Traditional exchanges and cryptocurrency exchanges have been moving towards a "meet in the middle" approach on crypto securities for a while, but Coinbase's sights are clearly set on the meeting of the two and bringing the benefits of each to the other.
This means regulation, oversight and appropriate consumer protection for cryptocurrency assets and the advantages of tokenisation for traditional assets.
"Ultimately, we can envision a world where we may even work with regulators to tokenise existing types of securities, bringing to this space the benefits of cryptocurrency-based markets — like 24/7 trading, real-time settlement, and chain-of-title," it said. "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.
"This is all being enabled by our acquisition of Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC."
Coinbase aims to offer a wide range of cryptocurrency tokens, and going forward, it looks like any exchange with ambitions to carry a wide range will need to get appropriately licensed to offer the full range.
Poloniex, following its acquisition by Circle, was the first to make concerted overtures to the SEC for these purposes, and other exchanges have since followed suit.
But Coinbase's sights go beyond simply buying and selling tokens, or offering a marketplace to do so. The company is aiming to become the Google of cryptocurrency. Keystone Capital Corp. and company are just the latest in a long line of acquisitions and investments, many of which are geared towards expanding the scope of what Coinbase can offer customers of all kinds.
There's no hard timeline on the arrival of securities tokens yet, and the next expansion of Coinbase's line-up will probably be in the form of new ERC20 Ethereum-standard tokens.
Disclosure: At the time of writing, the author holds ETH, IOTA, ICX, VET, XLM, BTC and NANO