According to the official blog, Coinbase is posed to become the first fully licensed crypto broker-dealer capable of offering crypto securities, which fall under the purview by US Securities Exchange Commission (SEC).
This announcement states that Coinbase is waiting for approval by SEC of its new licenses to become a regulated broker-dealer. To get this far, the company had to acquire a broker-dealer license, an alternative trading system license (ATS) and a registered investment advisor (RIA) license. It seems that all these were acquired with the purchase of three companies: Keystone Capital Corp, Venovate Marketplace Inc. and Digital Wealth LLC. The details of the deal are still undisclosed.
The whole ordeal with license acquisition and approval is quite important for Coinbase, because should they succeed, the company will become the first regulated cryptocurrency broker-dealer under the oversight of US SEC and Financial Industry Regulatory Authority (FINRA).
If approved, these licenses will allow Coinbase to expand its services to include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.
Ultimately, we can envision a world where we may even work with regulators to tokenize existing types of securities, bringing to this space the benefits of cryptocurrency-based markets — like 24/7 trading, real-time settlement, and chain-of-title.
Asiff Hirji, President & COO, Coinbase