Sources: Coinbase Exchange Ready For Stock Market Listing
Coinbase Inc. is planning an initial public offering that will make it the first major U.S. cryptocurrency exchange to go public. The listing would have to be approved by the U.S. Securities and Exchange Commission and the Federal Deposit Insurance Corporation.
If both regulators give the go-ahead, it would be a milestone, as advocates of the cryptocurrency seek majority support. Coinbase plans to list shares on the New York Stock Exchange and the U.S. Securities and Exchange Commission, the source said, noting that plans could still be changed.
The company further added that it has not yet filed its intention to go public with the U.S Securities and Exchange Commission (SEC), but is in talks to contact investment banks and law firms.
The source requested anonymity because preparations for the IPO are confidential, and the SEC declined to comment. A Coinbase spokesman said the company does not comment on rumours or speculation that are being spread out.
The company sells new shares through a direct listing, not an IPO, and existing investors are not bound by SEC rules on when they can sell their stakes in an IPO.
Significantly, the SEC has not issued specific guidelines for most virtual coins, which say that cryptocurrencies are securities and could be regulated.
Still, many cryptocurrencies have successfully gained legitimacy in U.S. financial markets, such as Bitcoin and Ethereum. Coinbase, which is valued at more than $8 billion at its current market value of about $1.5 billion, is considering an IPO as a “direct IPO” rather than a traditional ICO, the source said.
Founded in 2012, Coinbase is one of the most prominent cryptocurrency platforms for trading various virtual coins, including Bitcoin, Ethereum and XRP. More than 1.5 million people in the United States and worldwide invest in the San Francisco-based company, according to its website.
Bitcoin is currently trading at nearly $9,400, according to the Coinbase website, while Ethereum is trading at about $7,500. Coinbase said Wednesday it had hired former U.S. Attorney General Eric Holder as its top legal adviser.
