US crypto exchange, Coinbase is acquiring securities dealer, Keystone Capital in order to become SEC regulator broker-dealer. It is buying trio firms including Keystone Capital, Venovate Marketplace, Inc., and Digital Wealth LLC to operate as broker-dealer with the license.
Undoubtedly, Coinbase which is operating over 32 countries is now acquiring securities dealer California based FINRA-registered broker-dealer, Keystone Capital. It is extending its offerings and gradually moving towards non-crypto financial products.
According to an announcement, the Coinbase is looking to work with “regulators to tokenize existing types of securities”, However, the crypto exchange believes that it will “democratize access to capital markets” for both investors and companies.
The President and CEO of the exchange said:
“If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license”.
Early today, Coinbase official tweets that it is “on track” to listing SEC-regulated crypto securities:
Significantly, this approach allows Coinbase in a high position to sell tokens under a security registered in coming days. Likewise, exchange joins with other platforms that are into blockchain-based securities under the SEC regulatory.
“Ultimately, we can envision a world where we may even work with regulators to tokenize existing types of securities. Thus bringing to this space the benefits of cryptocurrency-based markets — like 24/7 trading, real-time settlement, and chain-of-title”.
Recently, Coinbase declared that it is entering into Japanese market, in order to ‘accelerate the global adoption of cryptocurrency. It had plans to set up a new office in Japan and work with Japan’s Financial Services Agency (FSA). Since 2016 the Coinbase proposed a plan to enter Japanese market when it has raised $10.5 million from the Bank of Tokyo-Mitsubishi UFJ (BMTU) and Mitsubishi UFJ Financial Group (MUFG).
Image Source: Coinbase deals