Public Key: Coinbase and Gemini Exchanges Push Bitcoin Globally
Will Coinbase Soon Get the Green Light to Offer Crypto Securities? It’s something the company has been itching to do since before its 2021 public listing.
Public Key is a weekly roundup from Decrypt that tracks major publicly traded crypto companies. This week: Coinbase takes a big step toward its ambition to issue crypto securities. CEO Brian Armstrong and his founding team have been planning the project since before the company went public. The question is, will Coinbase succeed this time?
Coinbase’s Real Wins
This week continues a good one for Coinbase, as the company has been able to get out of a lawsuit in Vermont and win the right to offer services in India.
Now, observers are questioning whether Coinbase will be allowed to offer crypto securities. This is a move the company has been eyeing for a long time.
If Coinbase succeeds, it would be a huge win for the real-world assets (RWA) segment, which puts assets like stocks, bonds, and real estate on the blockchain. This would not only be a revolutionary move, but also a solution to reduce transaction times and increase efficiency, something Wall Street has been working on for years.
Currently, BlackRock dominates the RWA space, with its BUIDL fund just hitting $1 billion in assets under management. These products allow investors to access collateralized assets like cash and US Treasury bills without having to move money through traditional brokerage accounts.
Will Coinbase ever issue a COIN token?
Last week, Coinbase officially went public on Nasdaq, opening the door for investors to buy its shares. Meanwhile, crypto enthusiasts can buy a tokenized version of the stock on exchanges like FTX and Binance. However, Coinbase’s native token issuance remains a big question mark.
More progress for Coinbase
Coinbase recently opened 24/7 access to Bitcoin and Ethereum futures, helping the company boost its revenue from trading fees — its biggest source of revenue.
By the end of 2024, the company will have recorded cash flow from operations of $2.5 billion, double the $922 million it generated the previous year. Coinbase’s stock (COIN) rose 3.17% to close at $183.12 over the weekend.
New IPOs and ETFs in the Sky
There have been rumors that Gemini is preparing for an IPO, which was confirmed when it filed with Goldman Sachs and Citigroup last week. Gemini is the first exchange in a list of crypto companies like Bullish, Circle, Kraken, and Blockchain.com to move closer to an IPO.
Michael Saylor’s Bitcoin Strategy
MicroStrategy hasn’t made any new Bitcoin purchases since February 24, holding its holdings at 499,096 at an average price of $97,500 per Bitcoin. The company is expected to continue to maintain this strategy going forward.
Other Highlights
REX Shares Fund has just launched an ETF that makes it easier for investors to access MicroStrategy’s Bitcoin-backed bonds. “BMAX removes the barriers to entry, making it easier to invest in Michael Saylor’s strategy,” said CEO Greg King.
Rex has also filed to launch an ETF that tracks the price of MOVE, the Movement Network token, along with products related to TRUMP, BONK, and Dogecoin.