Coinbase, the leading US crypto-trading platform, may soon be an SEC-regulated broker-dealer.
In an announcement published on its blog earlier this week, Coinbase stated that it was pending approval from the federal authorities to become capable of offering blockchain-based securities.
In order to obtain the relevant licenses, Coinbase will acquire three companies, Keystone Capital Corp., Venovate Marketplace Inc. and Digital Wealth LLC. The move will allow it to expand its services and offer non-crypto related products.
Predicting tighter regulations of digital-assets in the coming months, Coinbase has chosen this path to ensure they can continue to provide trusted and legal services to customers.
The San Francisco-based exchange believes being able to tokenize securities will help bring more democratic access to capital markets. They envision a future where the securities market enjoys the same benefits as cryptocurrency – 24/7 trading, real-time settlement and chain-of-title.
The move follows another recent announcement by Coinbase of the launch of their suite of institutional products, including Coinbase Markets and Coinbase Prime.
This foray into securities and futures products isn’t unique to Coinbase. Earlier this month the peer-to-peer payments platform Circle announced its intentions to acquire a federal banking licence and registration as a broker with the SEC.
In a similar move, US-based traditional broker Susquehanna amended their current broker-dealer license to include trading of Bitcoin Futures and cryptocurrencies.
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