Listing as Early as this Year
Coinbase to Plan for Stock Market Listing
  • Coinbase might be making its public debut this year
  • A nod from the SEC will make Coinbase the first publicly traded crypto marketplace
  • Coinbase will look at a direct listing as opposed to the traditional IPO

The current times have hardly sparked economic growth due to the global pandemic COVID-19 forcing various top tier companies to downsize causing job losses and revenue losses. However, digital asset exchange Coinbase might have a few plans which can make the company grow leaps and bounds.

An exclusive report by Reuters revealed that the firm might be looking at making a debut in the stock market anytime later this year. 

Instead of an initial coin offering (IPO) the firm will take the route of a direct listing of its shares. Essentially a direct listing enables companies to trade publicly without putting a price on its equity which is the case in an IPO.

In order for Coinbase to do the listing, it would require a green light from the US watchdog Securities and Exchange Commission (SEC). Should it receive a go-ahead, it will become the very first publicly traded cryptocurrency exchange firm. Alongside this, approval will be a major milestone for the sector encouraging more crypto firms to get a mainstream endorsement.

The SEC has admitted that while cryptocurrencies can be considered as security, it has yet to develop a set of guidance and regulation on these virtual coins. This will also establish better trust between mainstream VCs who are wary of the sector and crypto firms.

Read Also: FalconX Raises $17M From Accel and Coinbase to Develop its Crypto Trading Platform

Reuters added that while the firm has not expressed any intention to go public – either to stakeholders or the SEC – but “has been in talks to hire investment banks and law firms,” per sources who have chosen to be anonymous. After having contacted the firm, Reuters said that a Coinbase spokesman denied commenting on any rumors or speculation.

Listing as Early as this Year
Coinbase to Plan for Stock Market Listing as Early as this Year. Image Credit: Unsplash

While it is a volatile market, it’s no secret that crypto is emerging as a growing sector. With more than 35 million users trading in a slew of virtual coins, including bitcoin, ethereum, and XRP, Coinbase has witnessed massive growth in the past few years. After the funding round in 2018, its market value rose to $8bn. Among other developments, the firm announced that it appointed ex-Facebook deputy general counsel Paul Grewal as its chief legal officer.

If the stock listing goes through, it’s won’t be surprising that more highly-valued cryptocurrency unicorns start gearing up for a run on the stock market.