Coinbase is one of the safest and highly secure online platforms for buying, selling, transferring, and storing digital currency. It is the largest cryptocurrency exchange in the US which revealed the empowering of listing security tokens. So, here we are going to talk about Coinbase getting a green signal to list security tokens and the outcome of obtaining license from US regulators.
Is Security Token Can Be Future of The Digital Economy?
According to the last month’s report, Coinbase was all prepared to acquire Keystone Capital in a bid to enter in the list of regulated broker-dealer firms. However, the company was waiting for the acceptance from SEC (the Securities and Exchange Commission) and (FINRA) the Financial Industry Regulatory Authority. Finally, a month later, on 16 July 2018, company has got the approval for the purchase.
Moreover, the company also obtain the license for firms like Digital Wealth LLC and Venovate Marketplace Inc. After the purchase this trio, it seems like now Coinbase can function as ATS (alternative trading system), broker-dealer and RIA (registered investment adviser). If the company has plans to function as the Alternative Trading System, then the San Francisco-based organization can handle outside the mainstream public stock exchange market.
However, there are many other similar services available for emerging digital asset classes which is different from both alternative trading systems and public stock exchanges. After getting the green signal from the US Regulators now the company can smoothly work as one of the first regulated trading platforms that provide security tokens listed in initial coin offerings (ICO).
Well, the first announcement took place on June 6, 2018, and Asiff Hirji, the Chief Operating Officer Of Coinbase shared; “If approved, these licenses will set Coinbase on a path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.”
Listing Cryptocurrency as A Security Tokens
After obtaining the license from the Securities and Exchange Commission and Financial Industry Regulatory Authority, Coinbase can list security tokens. In fact, Coinbase regulatory status allows its providers to give an upgrade from a collection of state licenses to being under federal supervision. It seems like the company has got the necessary approvals and forthcoming steps to combine the new platform with the existing technology.
Moreover, in America, trading securities need precise and strict adherence to law and regulations. So, the company has plans to ensure its protocols are up to mark to go further without any interruption. In fact, staff workers also need to adhere to the required licenses to trade tokenized securities.
Coinbase Adds Five More Coins
As per the source, the company has the plan to add five new tokens in its exchange in the forthcoming months. In fact, this Friday revealed the name of five coins that they are considering ZCash (ZEC), Stellar (XLM), Cardano (ADA), 0x (ZRX) and Basic Attention Token (BAT).
The added coins would be in addition to the Ether, Litecoin, Bitcoin and Bitcoin Cash. These are one of the coins that are currently supported on the platform, and Ethereum classic is new among these coins that the company is planning to add shortly.
The outcome of Obtaining License from US Regulators
After acquiring new companies Digital Wealth LLC and Venovate Marketplace Inc and obtaining the license to security tokens, it seems like Coinbase has a long way to go.