Coinbase is considering launching its own platform for IEOs, as has already been done, for example, by Binance and Bitfinex.
This was revealed by Kayvon Pirestani, head of institutional sales at Coinbase in Asia, speaking at a panel at the Invest: Asia conference.
Kayvon Pirestani said:
“Coinbase is carefully exploring not only the IEO space but also STOs. But I can’t make any formal announcements right now”.
Pirestani also added that there may be news about this in the coming months.
Coinbase has already received regulatory approval through the acquisition of several securities trading companies with broker-dealer licenses, including Keystone Capital Corp., Venovate Marketplace and Digital Wealth LLC. However, Pirestani reported that the company is still working on how to use those licenses.
However, Coinbase Asia’s sales manager also pointed out that there is a lot of talk about security tokens, but the trading volume on the market is still very small. Coinbase would, therefore, be waiting for greater market demand before launching STOs.
Coinbase’s entry into this sector could be interesting, especially as it is an American company, meaning that it could meet all US regulatory requirements for STOs. Furthermore, Coinbase is by far one of the most popular token exchange markets in the US.
To date, more than 12 exchanges around the world have announced the launch of their own IEO platforms, and more than 40 projects have carried out Initial Exchange Offerings.
Meanwhile, Coinbase has also announced the launch of the Bootstrap USDC fund, to encourage further growth of decentralised finance (DeFi).
The fund will support developers who create DeFi protocols by investing USDC directly in the protocol.
USDC is the stablecoin of Circle and Coinbase pegged to the US dollar, and the Bootstrap USDC fund intends to bring liquidity to the still illiquid DeFi protocol development market.
The first two investments will be Compound Finance, and dYdX, each of which will receive 1 million USDC.
Coinbase is no longer simply an exchange, but a group of companies active in different sectors of the crypto world. As such, the hypothesis that it could launch an IEO and STO platform seems far from absurd.