Coinbase is buying broker-dealer Keystone Capital
To expand its offering into ICOs
Posted on June 6, 2018 11:50 PM.
Coinbase, one of the leading cryptocurrency and bitcoin businesses, is acquiring a securities dealer that the company hopes will allow it to expand into the red-hot coin-offerings market. The San Francisco-based firm said it is acquiring Keystone Capital Corp., a Cardiff, Calif.-based financial-services firm.
The acquisition of Keystone comes with multiple perks, including their registration as a broker-dealer, and license to run an alternative trading system (ATS). Despite Keystone having regulatory approval, Coinbase still needs approval to operate with them, but Coinbase's COO isn't worried.
“We take our role in legitimizing the space very seriously,” Mr. Hirji said.
The new licenses will allow Coinbase to expand into further markets, including digital tokens, and Initial Coin Offerings. The value of this acquisition is really in Keystone's licenses...
... [and] Keystone’s existing businesses would be wound down, and its operations integrated in Coinbase’s business, though Coinbase doesn’t expect that process will involve any layoffs, the company said.
This isn't Coinbase's only big move recently. They just launched their new professional trading platform, Coinbase Pro.
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