San Francisco-headquartered cryptocurrency company Coinbase Inc. has initiated plans for a landmark stock market listing that Reuters sources claim could happen later this year or in early 2021.
The potential Coinbase stock market listing is pending the approval of the United States Securities and Exchange Commission (SEC), although Coinbase is yet to file with the regulator officially.
According to the report, Coinbase is in talks to hire several investment banks and law firms to pursue the listing. The stock market listing is also quoted to likely be in the form of a direct listing rather than an initial public offering (IPO).
Unlike IPOs where new shares are issued to investors, a direct listing for Coinbase Inc. means that existing investors will not be bound by any lockup period before they can sell their holdings.
Meanwhile, the sources admitted that the listing’s timing could vary since Coinbase’s plan to secure the market debut is still subject to change.
An industry milestone
While news of a potential stock market listing for Coinbase is still at an early stage, a stock market debut for the crypto company founded by Brian Armstrong in 2012 is set to be an industry milestone.
Especially for U.S firms, it could also pave the way for cryptocurrencies to further enter mainstream consciousness, and get the much deserved regulatory clarity that industry participants have clamored through the years.
Coinbase is currently valued at $8 billion following a 2018 funding round. The exchange company has also diversified into cross-border payments and Custody, boasting some 35 million users and the highest trading volume among its competitors.
Coinfomania also reported on the possibility of an IPO for fintech payment startup, Ripple, with CEO Brad Garlinghouse hinting a 2021 target for the company.