Large cryptocurrency exchanges like Coinbase definitely attract the interest of regulators just like the SEC. Because of this, the prospect of making good on regulatory requirements is highly valuable.
Since its inception, Coinbase has only listed four cryptocurrencies—Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Its reluctance to list tokens originated in the fact that it does not wish to deal using the red tape behind offering pairings for the usa dollar against them.
It has all changed now that Coinbase acquired Keystone Capital, a broker-dealer that trades digital securities. Making use of the clout it now has using this acquisition, it may offer more blockchain-level securities than simple cryptocurrencies.
“In the United States, some of these [tokens] is going to be at the mercy of SEC oversight. With this thought, securing these licenses will bring us a step closer to our goal, that is to be the most trusted method for our customers to purchase, sell, and make use of many kinds of crypto assets,”
the business said in its blog.
A few months ago, Coinbase announced support for ERC-20 tokens, but hasn’t really done much since that time. The acquisition of Keystone Capital now shows us that the ongoing company is serious about offering tokens with its exchange.
This also could have a impact that is strong the ICO ecosystem, where startups have difficulty selling their tokens to “nocoiners,” or individuals who usually do not own any cryptocurrency. Additionally, there are those who already own Bitcoin or Ether and would rather to acquire tokens using fiat. Coinbase may help serve these demographics.
The company’s announcement shows us that it has bigger plans for this acquisition, however.
“Ultimately, we are able to envision a world where we may even make use of regulators to tokenize existing forms of securities, bringing to the space the benefits of cryptocurrency-based markets—like 24/7 trading, real-time settlement, and chain-of-title”