Blockchain-based equity trading could become big business.
A little more than a month after acquiring Keystone Capital, Venovate Marketplace Inc, and Digital Wealth LLC, Coinbase has reportedly received approval for the deals from the Financial Industry Regulatory Authority (FINRA). The acquisitions – which provide the exchange with a broker-dealer license, an alternative trading system license, and registered investment advisor license – will pave the way for Coinbase to list blockchain-based security tokens for trading. These are digital assets that represent equity in a company.
In March, the SEC gave notice to cryptocurrency exchanges about how they can ensure their legal compliance and advised investors on how to proceed:
“To get the protections offered by the federal securities laws and SEC oversight when trading digital assets that are securities, investors should use a platform or entity registered with the SEC, such as a national securities exchange, alternative trading system (‘ATS’), or broker-dealer.”
Clearly, Coinbase closely followed the agency’s guidance.
In the last few weeks, the exchange has begun exploring potential new listings, including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC), and 0x (ZRX). However, these digital assets may not arrive as soon as others, like Ethereum Classic.
“Unlike Ethereum Classic, which is technically similar to Ethereum, these assets require additional work that necessitates contact with many external parties. To ensure that this news comes to you directly from us, we are publicly announcing our intentions,” the exchange explained on Twitter. “Please note that we are not guaranteeing the listing of any of these assets. We may list them with partial support, or only in specific jurisdictions. In particular, some assets may become available in other countries before the US.”