Coinbase bought three brokerage companies at once

The leading American cryptocurrency platform Coinbase has begun a serious journey towards obtaining broker-dealer status and regulation by the SEC, as well as FINRA. To do this, the company bought three brokerage companies at once. This is Keystone Capital Corp, which previously collaborated with blockchain startups, Venovate Marketplace, Inc. and Digital Wealth LLC.

The crypto exchange is confident that the acquisition of brokerage companies will help it fully comply with the requirements of the SEC regulator and obtain a license. The brokerage license will significantly update the range of Coinbase services. New financial tools for working with market data will provide the opportunity to increase market coverage, tokenize existing types of securities and expand the list of digital assets.

Coinbase believes that this approach will make the market more transparent and democratic, simplifying investor access to the capital market, both private and institutional.

Over the past year, Coinbase has demonstrated a commitment to expanding into new markets. In April, the platform was able to boast a 500% increase in the value of shares and an estimated market value of at $8 billion, acquiring Earn.com, purchasing Cipher Browser, free Ethereum mobile wallet and web3 dapp browser, purchase of the Paradex exchange, release of new products to the market: Coinbase Markets, Coinbase Custody, Coinbase Institutional Coverage Group and Coinbase Prime and launch of Coinbase Index Fund. 

The desire of one of the leading cryptocurrency companies to enter the regulated market will definitely have a positive impact on the situation with the regulation of digital currencies in general. Uncertainty in the legislative field and tense relations with regulatory authorities can ruin the market. The lack of classification of cryptocurrencies and understanding of the principles of its regulation hinder the development of the cryptocurrency market and stop large institutional investors who prefer to play by transparent rules.

The entry of large cryptocurrency companies, such as Coinbase and the startup Circle, into regulated financial industries will definitely improve the regulatory climate in the digital industry and will mark the beginning of a new trend of cryptocurrency companies exploring the traditional market.