Coinbase Executive Confirms Company Has No Activity Within the Decentralized Exchange Arena
As Binance, the most relevant crypto exchange in the whole world is launching its own decentralized exchange (DEX) platform, many people are currently wondering whether Coinbase, the largest crypto exchange in the U. S, is going to do the same.
According to a recent interview published by The Block Crypto, it seems that Coinbase is not following Binance’s move. Emilie Choi, the company's vice president for Business, Data and International, was interviewed by the crypto media outlet and affirmed that there are no current plans to invest in this area.
During the interview, she affirmed that the company may have bought the P2P trading platform Paradex last year but that decentralized trading was simply not one of the biggest priorities that the company had at the moment.
She did confirm that the company has eyes on this specific field, but more to watch out what is currently unfolding there than to actually be able to work on it and create something right now like Binance is currently doing.
The decision is not completely surprising as Coinbase is currently targetting more high-volume investors at the moment, especially the institutional investors and the more mainstream areas of crypto trading. Binance had a completely different strategy that is more focused on retail investors, as well as decentralization.
It should be remembered, for instance, that Binance is only focused on trading crypto assets while Coinbase has plenty of fiat options and it is a far more regulated company, too. They just cater to different types of investors, in general.
Choi affirmed that Coinbase can be considered a fiat to the crypto bridge and that the rules that they use in order to keep the company working are fairly different than the ones used by the other companies at this moment. They want to be a trusted safe space for this new economy.
According to Choi, Coinbase is far more careful with what they are doing because the company is so focused on being compliant and securing the funds of the investors at all times. This clearly makes them more averse of taking risks in currently uncharted waters, but the company is eagerly looking at the scenario in order to determine where the future is.
While Binance is often at the top of the world when it comes to trading volumes, Choi affirmed that it would be a mistake to consider that Coinbase and Binance operate at basically the same sectors of the crypto world.
Why? Because they are so different. Coinbase is focused on being a fiat to crypto bridge (especially for wealthy investors) while Binance is focused on offering numerous crypto options for people who want to play in this world. These are two very different offerings.
In related news, Coinbase is currently talking with Facebook about the mysterious GlobalCoin (known as Facebook Coin and Project Libra before). At the moment, nobody is sure about the relationship of the companies.