Coinbase is raising equity capital by issuing Class A common stock in April 2021 on the Nasdaq Stock Market through a direct listing instead of an Initial Public Offering (IPO). This will be the first crypto-centric company to go public, setting the stage for many more to come in the near future as crypto assets such as Bitcoin, NFTs, and Etherum are taking the world by storm.
Coinbase Global Inc. is the second largest cryptocurrency exchange in the world by volume of transactions per year, just behind China’s Binance. By February, Coinbase facilitates around $456 billion transactions and hosts more than $90 billion in assets on their platform. These assets include fiat currencies, Bitcoin, Ethereum, Litecoin, and other cryptocurrencies, stablecoins, and Non-Fungible Tokens (NFTs). The company is now operating across more than 100 countries, with more than 1,200 employees serving more than 43 million verified users on the crypto platform.
Coinbase allows its users to store, buy, sell and exchange digital currencies and assets. Coinbase CEO Brian Armstrong describes Coinbase as the company that provides more “economic freedom for people and businesses”. “The current financial system is rife with high fees, delays, unequal access and barriers to innovation … Economic freedom is a necessary, if not sufficient, condition for human progress … Higher economic freedom correlates with the kind of societies that we all aspire to create. Our job at Coinbase is to help make this future a reality.” says Armstrong in the company’s S-1 Form.
According to the company’s S-1 Form filed for direct listing, Coinbase focuses on tailoring their services and products to 3 main different customer segments:
Retail users: Coinbase offers the primary financial account for the crypto economy – a safe, trusted, and easy-to-use platform to invest, store, spend, earn, and use crypto assets.
Institutions: Coinbase provides hedge funds, money managers, and corporations a one-stop shop for accessing crypto markets through advanced trading and custody technology, built on top of a robust security infrastructure. We also offer a state of the art marketplace with a deep pool of liquidity for transacting in crypto assets.
Ecosystem partners: Coinbase provides developers, merchants, and asset issuers a platform with technology and services that enables them to build applications that leverage crypto protocols, actively participate in crypto networks, and securely accept cryptocurrencies as payment.
With the April listing on the horizon, investors are eyeing for the estimated listing price. Coinbase Global Inc.’s listed price will be determined by Nasdaq after a consultation with a range of bulge bracket investment banks including Goldman Sachs, JP Morgan, Allen & Co., and Citigroup.
The company’s direct listing will raise the bar for other crypto or blockchain focused companies. With the entry into public equity markets, Coinbase is furthering their mission to provide open finance for retail investors all around the world.
Share
The Centre for Finance, Technology & Entrepreneurship (CFTE) is a global education platform that aims to equip financial professionals and organisations with the necessary skills to remain competitive in a rapidly changing industry. Our leading training programmes, curated by global industry experts, help talent build skills to join the digital revolution in finance. CFTE’s courses are globally recognised with accreditations from ACT, IBF, CPD, SkillsFuture and ABS.
At CFTE, our mission resonates with every learner’s goals to rapidly advance in their career, to thrive in their next project or even to lead the disruption in finance with their own venture. To help you do this, CFTE gives you the tools you need to master the right skills in digital finance. We bring exclusive insights from leaders that are steering the developments in the financial sphere from global CEOs to disruptive entrepreneurs. With CFTE you don’t just learn what’s in the books, you live the experience by grasping real-world applications.
If you are looking for rich insights into how the Financial Technology arena is transforming from within, we can help you get the latest knowledge that will stir things up in your career. CFTE offers leading online programmes in digital finance, covering an expanse of topics like – Payments, AI, Open Banking, Platforms, Fintech, Intrapreneurship and more, that will help you conquer the financial technology landscape. With this expertise at your disposal, you will be on track to turbocharge your career.
You will be learning from a curated line-up of industry leaders, experts, and entrepreneurs hailing from Fortune 500 companies and Tech Unicorns, among others. They will each be presenting their knowledge and experience in the field of digital finance. No matter if you are embarking on a new journey or fortifying your role, these lecturers and guest experts will guide you through the perspective of established institutions like – Starling Bank, Wells Fargo, tech giants like – Google, IBM, successful startups such as – Kabbage or Plaid, among many more!