Major Bitcoin Exchange Coinbase Prepares For Stock Market Listing - Report
The company has already been in talks to hire investment banks and law firms, the report said, adding that Coinbase is exploring going public via a direct listing. In this case, a company does not sell new shares as it does in an Initial Public Offering (IPO). Also, existing investors are not bound by lock-up restrictions on when they can divest their holdings following the market debut.
The listing would need the US Securities and Exchange Commission's blessing, Reuters said, adding that "it would represent a landmark victory for cryptocurrency advocates vying for mainstream endorsement."
According to Reuters, Coinbase and the SEC declined to comment.
As reported in May, Coinbase, together with another US-based crypto exchange, Gemini, became the first crypto clients of the major investment bank JPMorgan Chase. Back then, Kelvin Koh, Co-founder and Partner at Spartan Capital, opined that the bank made this move "to position its IB [investment banking] for Coinbase’s and Gemini’s IPO in the not too distant future."
In 2018, Coinbase was valued at USD 8bn following a mega funding round.
Now the company claims it has more than 35 million users worldwide.
The CEO said that Binance is not planning an IPO: "We plan to decentralize more."