Crypto Exchange Coinbase Gets approval from US Regulator for Nasdaq Listing

• Coinbase, a cryptocurrency exchange got approval from US Regulator to get listed on the Nasdaq e-marketplace for trading securities.
• The platform has over 43 million users worldwide and has transacted more than $456 billion to date
• The increase in Coinbase’s private market valuation shows how the platform won the trust of investors and perceived value of the company for digital currency which had a trust issue earlier.

Coinbase, a cryptocurrency exchange platform that helps an individual buy and “hodi” cryptocurrencies including Bitcoin, Ethereum, Litecoin among others cleared all the paperwork that requires to be listed on the Nasdaq, paving the way for a landmark victory for cryptocurrency advocates.

The investor’s trust in the platform has been doubled after its acceptance received from the US Securities and Exchange Commission (SEC) and it’s also been gaining acceptance from the mainstream financial services industry.

Founded by Brian Armstrong and Fred Ersham in 2012, headquartered in San Francisco, California, United States it’s a platform that allows traders to trade Bitcoins smoothly. As of March 2021, The company has raised funding of $547.3 million from 58 investors including venture firms and individual investors. The platform has to provide hassle-free transaction service to over 43 million users worldwide and has transacted more than $456 billion to date, according to the company’s latest filing with the SEC.

After it will get listed on Nasdaq it would mark a significant endorsement for a digital currency that has struggled a lot to win the trust of investors regulators and the general public.

Coinbase said in a blog post that its shares were declared effective by the SEC earlier on Thursday. The company, which plans to go public through a direct listing, expects its shares to start trading on the Nasdaq on April 14.

Also Read: Adtech firm InMobi prepares for Nasdaq listing to reach $15 billion valuation

In a direct listing, no shares are sold in advance, as is the case with an initial public offering (IPO). The company's share price is determined by orders coming into the stock exchange. Advocates argue it is a better way to price new stock rather than an IPO.

In a regulatory filing last month, Coinbase mentioned that its stock would be traded at a weighted average price of $343.58 in the first quarter of 2021 through March 15, a nearly 13-fold jump in its valuation to around $68 billion in the space of a few months.

This week Visa said that they have decided to allow people to use cryptocurrency US dollar for discharging transactions on payment platform, whereas Paypal has already started accepting transactions done using cryptocurrency holdings to pay its millions of global online merchants.

The increase in Coinbase’s private market valuation shows how the platform won the trust of investors and increased the perceived value of the company has amplified with the jump in the price of cryptocurrency bitcoin.

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