The renowned cryptocurrency exchange, Coinbase, continues to make its way to emerge on the traditional stock market. Already one of the world’s leading Bitcoin (BTC) and other cryptocurrency trading platform, Coinbase has acquired the California-based securities brokerage firm Keystone.
While the details of the agreement are not yet known, speculation is growing that it is the first step for the cryptocurrency-related firm to offer products based on digital assets in the form of shares, in the future.
Keystone Capital Corp. is a US FINRA registered broker and is licensed to operate as an investment advisor, as well as to operate an alternative trading system, or ATS.
For Coinbase, which currently markets only the most capitalized cryptocurrencies on the market, the acquisition of Keystone could open up new business opportunities and allow it to offer its services to institutional investors with ease. Also, the acquisition of Keystone also increases the possibility that Coinbase may, in the future, expand on Wall Street.
But first, Coinbase will need regulatory approval to operate under Keystone’s licenses. President and COO Asiff Hirji said Coinbase is confident that he will get approval from the authorities. The company has advanced that in a matter of several months it will be able to integrate Keystone’s operations, once it obtains such approvals.
While Coinbase acquired Keystone, Goldman Sachs’ Circle P2P payments platform pursues a federal banking license
Coinbase movement is not the only one of this kind that has taken place in the last few hours.
Also, the P2P Circle payment platform, supported by Goldman Sachs in one of its final rounds of funding, pursues a federal banking license with the Office of the Currency (OCC) and registration as a brokerage and trading venue with the US Securities and Exchange Commission (SEC).
According to Coin Telegraph, Jeremy Allaire, CEO of Circle, has said that the platform first seeks the approval of the SEC and, to that end, has already withdrawn the tokens that do not confirm the US supervisor’s guidelines for the Poloniex cryptocurrency exchange platform, which they acquired for $400 million in late February.
Experts point out that Wall Street is taking small steps to give space to cryptocurrencies, thus the news that Coinbase acquired Keystone and Circle P2P payments platform seeks officials’ recognition shouldn’t come as a surprise.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.