Is Coinbase Planning to Launch IEO and STO Platforms?
Coinbase, the popular US-based crypto exchange has confirmed that it desires to launch IEO and STO platforms. Reports show that the exchange recently acquired a US broker license with three acquisitions. According to Kayvon Pirestani, the head of institutional sales in Asia at Coinbase:
“We think there’s a really interesting opportunity there for Coinbase. In a nutshell, Coinbase is carefully exploring not only the IEO space but also STOs [security token offerings]. But I can’t make any formal announcements right now.”
Pirestani was commenting on the evolution of cryptocurrency capital formation at an Asia Conference. Coinbase will diversify its product offerings like Binance when it launches its IEO platform. Binance already operates a successful IEO platform called Binance launchpad. That platform has completed several projects that include Bittorrent, Celer, and Gifto.
IEO Platform A Few Months Away
Initial Exchange Offerings are considerably similar to Initial Coin Offerings. However, IEOs are backed by major cryptocurrency exchanges. Thus, the projects undergo extensive scrutiny and vetting before any form of fundraising takes place. The involved third-party crypto exchanges plan the events, make the smart contract, and also design the necessary marketing campaigns.
In the ICOs, the developer is fully responsible for making sure that the smart contract is authentic. The developer also guarantees that everything is conducted according to plans. Although Pirestani was fully clear that the news about any Coinbase IEO platform may come up in the next few months, considerations for regulated securities offerings in the United States could be less far along.
Coinbase has already applied for and received regulatory approval for the successful acquisition of several securities firm. That could be a considerable step towards the launch of trading support for tokens that are considered to be securities.
Licenses Already Acquired
At the time that the exchange got the license, it announced that it wanted to buy three companies that include Digital Wealth LLC, Venovate Marketplace, and Keystone Capital Corp. They aimed to make these purchases in a bid to become a regulated platform that offered to trade in security tokens and tokenize traditional financial assets.
Although Pirestani acknowledged that Coinbase has the mentioned licenses, it was also stated that Coinbase is still continuing to digest the acquisition and ‘repurposing’ the respective licenses. Recently, the exchange also introduced an open-source Dapps extension. The extension is compatible with any browser.