San Francisco based cryptocurrency exchange, Coinbase, may soon move from being a spectator in the game of initial exchange offerings (IEOs) and eventually set up their own platform according to a new report by the crypto news outlet, Coindesk.
The development was revealed by Kayvon Pirestani, Coinbase’s head of institutional sales while he was speaking during a panel at the ongoing Invest: Asia conference. Pirestani reportedly described the IEO business as a “really interesting opportunity” for Coinbase, and added,
“In a nutshell, Coinbase is carefully exploring not only the IEO space but also STOs. But I can’t make any formal announcements right now.”
Notably, while Pirestani was not going to give away substantial information regarding Coinbase’s plans to venture into IEOs, he disclosed that the new offering from Coinbase could go live in a couple of months while efforts to launch a market for security token offerings (STOs) remains at an early stage.
Regarding STOs, Pirestani confirmed that the exchange has acquired broker-dealer licenses that allow them to comply with existing regulations, although the exchange currently is working to get those licenses to fit into their new objectives.
Pirestani further asserted that security tokens are “talked about a lot but traded much less,” perhaps indicating that the exchange may still take a while before venturing into the relatively new market.
Meanwhile, it is essential to note that Coinbase’s stance towards STOs mirrors that of Binance, another leading cryptocurrency exchange that had in the past entertained questions regarding the possibility of launching platforms for trading security tokens.
Binance CEO, Changpeng Zhao had reportedly said in February that the company wants “to see how that market [security tokens] shakes up and already have licenses in a number of jurisdictions.”