After making its entry into Japan, Coinbase is now on track to become a US-regulated blockchain securities trading venue. They announced early on May 7th about their progress on the path to operate a regulated broker-dealer, pending approval by federal authorities.
They tweeted about listing SEC-regulated crypto securities:
“Today we’re excited to announce that we’re on track to become a US-regulated blockchain securities trading venue. We believe this is an important moment not only for Coinbase, but the entire crypto ecosystem.”
Once they get the approval, Coinbase will soon be able to offer securities based on blockchain under the oversight of the US Securities and Exchange Commission [SEC] along with the Financial Industry Regulatory Authority [FINRA]. This step ahead is accredited to their acquisition of a broker-deal license [B-D], an alternative trading system license [ATS], and a registered investment advisor [RIA] license. Their acquisition of Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth is the key point that has enabled all of this for them.
They clearly highlighted their claim saying:
“Ultimately, we can envision a world where we may even work with regulators to tokenize 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.”
“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.”
These licenses will fetch them an opportunity to offer better services in the future including crypto securities trading, margin and over-the-counter [OTC] trading, and new market data products in the future while also helping them move towards their goal smoothly. They believe this is a very important step to the entire crypto community and indicates maturation of the same.
They stated in their post:
“Securing these licenses will bring us a step closer to our goal, which is to be the most trusted way for our customers to buy, sell, and use many different types of crypto assets.”
The retail firm, Coinbase belongs under one of the largest exchanges in the US – GDAX, ranking 11 on CoinMarketCap with a volume of $165.8 million as seen at the time of writing. Another announcement from the CEO and co-founder of Coinbase earlier this month was the evolution of GDAX – their professional trading platform for individuals, to Coinbase Pro. He also stated that the switching action is a recognition that an individual active trader needs – a product dedicated completely to their specific necessities.
All the existing individual accounts on GDAX will automatically be eligible as a Coinbase Pro member. The evolved platform will be completely redesigned to make the trading experience much more simple and intuitive.
David Farmer, General Manager of Coinbase Pro had announced:
“Like GDAX, Coinbase Pro customers will still have direct market access to Coinbase Markets, the single pool of liquidity shared by all Coinbase products. When customers log into Coinbase Pro, they will see all of their existing GDAX balances and trade history and enjoy the same trading fees, APIs and security features that the current platform provides. GDAX and Coinbase Pro will operate side-by-side until June 29, 2018, with activity mirrored on both platforms. After June 29, all customers will be seamlessly rolled over to Coinbase Pro.”
They concluded with a note:
“Just as Coinbase has served as the on-ramp for many investors into the crypto space, we see our new licenses as another step toward bridging the gap between traditional finance and an open financial system for the world. We look forward to sharing more updates as we pursue these licenses and strive to bring the benefits of blockchain to the regulated financial services industry.”
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