Crypto Exchange Coinbase Could Go For A Stock Market Listing This Year
With the cryptocurrency market continuing to make progress over the last decade, popular crypto exchanges and companies continue to expand their services in the crypto space.
In one such move, popular cryptocurrency exchange is now mulling for a stock market public listing ahead this year. Citing sources familiar with the matter, Reuters reported that Coinbase can opt for a listing as early as this year. This will make Coinbase as the first U.S. crypto exchange to go public, said people familiar with the matter.
Of course, Coinbase will mandatorily need to go through all the regulatory process and seek approval from the U.S. Securities and Exchange Commission (SEC). In case, Coinbase gets a go ahead from the SEC, that would set a new benchmark and encourage other crypto companies and advocates to join the mainstream financial market.
The sources added that Coinbase could proceed for a listing later this year or early next year. However, they added that these plans are subjected to change ahead. Coinbase has not disclosed any of its intentions to go public so far. But the sources said that the company has been in active hiring of law firms and investment bankers.
On the other hand, the SEC has been much critical about cryptocurrencies while strongly insisting that many of them actually fall under the category of securities. When it comes to public listing, Coinbase is one among many of those first companies to do so.
Over the last year and two, Coinbase has also put major focus on offering institutional products and services to its clients. The company has also managed to get the necessary regulatory approval to handle services like the institutional-grade cryptocurrency custodial solutions.
After its last fundraising in 2018, Coinbase valuations stood at $8 billion. Sources familiar with the matter said that Coinbase might opt for a direct public listing instead of going through the traditional route of opting for an IPO.
In a direct listing, the company doesn’t sell additional new shares as in case of an IPO. Besides, all the existing investors have some lock-up restrictions on when they can divest their holdings after the public listing.
Coinbase is one of the world’s largest global cryptocurrency platforms in the market with over 35 million active users.