Coinbase, one of the largest cryptocurrency exchanges and wallet services operating in the US, has made several high-profile corporate acquisitions that further the company’s goal of becoming a federally regulated broker-dealer offering crypto securities.
In a June 7 blog post, Coinbase COO and president Asiff Hirji explained that the San Francisco-based firm is looking to obtain a broker-dealer license (B-D), an alternative trading system license (ATS), and a registered investment advisor (RIA) license in order to be able to offer blockchain-based securities “under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).”
According to Hirji, “these licenses will set Coinbase on a path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.”
In the blog post, Hirji reveals Coinbase’s “ultimate goal,” the ability to “tokenize existing types of securities,” bringing the benefits of cryptocurrency to the traditional trading market, including “24/7 trading, real-time settlement, and chain-of-title.”
Coinbase has moved closer to their goal after acquiring the Keystone Capital Corporation, Venovate Marketplace, Inc., and Digital Wealth LLC. The company has also recently announced a line of products for institutional investors called the Coinbase Suite of Institutional Products.
The firm’s expansion into institutional markets in the US also coincides with its expansion into Japan, the largest cryptocurrency market in the world.