Coinbase, one of the biggest cryptocurrencies brokers, appears to be planning for a stock market listing that could take place this year, which would be a landmark for the crypto community.
According to Reuters, three people familiar with the matter shared that the listing could be taking place this year or early next year, with the plans still uncertain and subject to changes since talks are still taking place about the hiring of an advisory team.
As the listing requires the authorization of the United States Securities and Exchange Commission (SEC), the government agency in charge of regulating the American market, the successful listing of the company would be a historic moment for the cryptocurrency industry in the world’s biggest economy.
Coinbase Could go for a Direct Listing Instead of Initial Public Offering
According to Reuters’s sources, the company would be considering a direct listing instead of an Initial Public Offering (IPO), which would mean no new shares would be created.
This would also offer current investors the liberty of not being bound by any lock-up restrictions determining when will they be able to reinvest their holdings.
Companies that have invested in Coinbase include names like the New York Stock Exchange, BBVA, and Truecapital Management.
While Coinbase refuses to comment on the rumors, the company has scheduled its first investor day for August 14th, 2020, which has additionally fueled the listing rumors.
A spokesperson for the company commented that the encounter was meant “to facilitate a wider understanding of cryptocurrencies and blockchain technology” and “an opportunity to hear our perspective on the crypto economy and learn about Coinbase’s role in the ecosystem”
What is Coinbase?
Coinbase was valued at $8 Billion in 2018 according to Crunchbase data, after private fundraising of $300 million.
The platform is available to users in over 100 countries, with more than 30 million users. Since its 2018 launch, it has traded more than $30 billion.
The platform attracts users due to its very high limits and high liquidity, supported countries and cryptocurrencies, and the multiple payment options offered.
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