Coinbase Launches Initiative to Simplify Asset Listing Process; Boosting Its Value Before an IPO

Top cryptocurrency exchange Coinbase is constantly looking for ways to improve its service offering. The firm has concluded plans to simplify how companies issue digital assets. To do this, the Silicon Valley firm is launching Asset Hub to help firms onboard their assets onto its central exchange platform.

Bypassing the Red Tape

Coinbase Asset Hub will function as a streamlined and easy method for asset issuers to list their products on the exchange.

Surojit Chatterjee, Coinbase’s Chief Technology Officer, explained that the Asset Hub is a single interface that allows cryptocurrency issuers to manage their assets’ entire life cycles on Coinbase.

Asset Hub would retain Coinbase’s security, compliance, and legal requirements. For compliant teams, it promises a straightforward and much faster listing process.

First, asset issuers would need to complete an application, which will include details like their asset’s name and ticker. They will also fill out technical and operational details concerning the asset. From there on, the next step is to fulfill Coinbase’s compliance criteria. Simplifying the process is just one part of the equation when it comes to digital asset listings. The regulatory requirements have to be considered too.

Chatterjee stressed that some jurisdictions might require additional listing requirements for cryptocurrencies. In such cases, Coinbase might delay listing until necessary compliance documents are provided.

Entering 2021 With Momentum

Coinbase is hoping to follow an impressive 2020 with an even stronger 2021. The company’s fundamentals remain strong, and with more institutional investment expected to flow into the crypto market, the firm is in a healthy position to expand its services.

Last November, Brett Tejpaul, Coinbase’s Senior Vice President and Head of Institutional Coverage, revealed that the company had raked in about $14 billion in institutional investment for the year.

Coinbase was also instrumental in the entrance of some large Bitcoin buyers last year. These include business intelligence firm MicroStrategy and British investment management firm Ruffer Investments.

The crypto exchange is also working on diversifying its operations. Earlier this week, Coinbase Ventures, Coinbase’s investment arm, closed an investment in Titan, a software and services developer for industrial Bitcoin mining operations. The investment size – as well as possible equity positions – were not disclosed.

With its profile growing, Coinbase is building a strong base to see its Initial Public Offering (IPO) through.

The company filed a Form S-1 with the Securities and Exchange Commission (SEC) last month, marking the first step towards an eventual public listing. It has also tapped experienced investment bankers Goldman Sachs to lead the offering, which is expected later this year.