Coinbase Acquires Keystone Capital in Effort to Offer Security Tokens and Offer More Fiat Pairs
Coinbase announced it would acquire securities dealer Keystone Capital in a bid to become a fully SEC-regulated broker dealer. A few months ago, Coinbase announced it would support ERC-20 tokens but has yet to do so. The acquisition of Keystone Capital now shows us that the company is serious about offering tokens in its exchange.
In acquiring Keystone Capital, Coinbase acquires its trading licenses including broker-dealer, alternative trading system, and registered invesment advisor licenses.
Asiff Hirji, the President and COO of Coinbase said in an interview:
We’re announcing that Coinbase is on track to operate a regulated broker-dealer, pending approval by federal authorities. If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
As this opens up more cryptocurrency tokens to fiat pairs (Coinbase only offers fiat pairs for Bitcoin, Bitcoin Cash, Ethereum, and Litecoin), the acquisition will conceivably have a strong impact on the liquidity of the entire industry. Investment and funding opportunities can now be open to a more mainstream audience, including those who do not yet own any cryptocurrency. Currently, most ICO fundraising efforts or ERC-20 purchases are limited to those who already own Bitcoin or Ethereum as they do not have fiat pairs.