Coinbase, the largest cryptocurrency exchange in the United States has announced the enabling of listing security tokens. The announcement comes after the approval by the United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINFRA) for Coinbase to purchase three companies.
Coinbase is a cryptocurrency exchange headquartered in San Francisco, California. They deal with Bitcoin, Bitcoin Cash, Ethereum, and Litecoin that can be exchanged with fiat currencies in around 32 countries, and helps in bitcoin transactions and storage in 190 countries worldwide.
Bloomberg reported the exciting news for the crypto world yesterday, July 16th. The three companies that have been acquired by Coinbase are Digital Wealth LLC, Venovate Marketplace Inc. and Keystone Capital Corp.
Thus Coinbase now will be able to offer security tokens. In addition, it also becomes broker-dealer thanks to Venovate and Keystone, register as investment advisers because of Digital Wealth’s license and even be an alternative trading system thanks to Venovate’s license.
Being an alternative trading system allows Coinbase to gain from the high in demand ICO market as it will be separate from public stock exchanges. ICO’s have raised almost $12 billion this year.
The broker-dealer status will allow more listings for Coinbase.
Coinbase recently stated its plan to add five more cryptocurrencies in its exchange. The five were Cardano (ADA), Basic Attention Token (BAT), Stellar (XLM), ZCash (ZEC) and 0x (ZRX).
With countries having different laws and regulations the freedom of allowing security tokens lets the exchange freely enable traders all over the world use its exchange and all its tokens.
With the cryptocurrency XRP having several allegations of being a security, the new announcement will give hopes to the Ripple community of finally witnessing XRP on Coinbase’s exchange.
Coinbase’s expansion will be made much easier thanks to the new acquisitions and licenses. Thus removing the obstacle of security tokens will help Coinbase go a long way.
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