Coinbase is developing a token crowdfunding platform for crypto startups looking to break into the space.
- Armstrong told O'Shaughnessy his product will streamline clients' token launches from custody to smart contract creation to governance to distribution. It will "hand hold people through the process," he said on the podcast.
- Coinbase is already a hub for U.S. crypto investing and has a growing lineup of crypto services. Adding what is commonly known as an Initial Exchange Offering platform to its mix would likely beat out existing IEO platforms and attract new prospective token crowdfunders to Coinbase.
- That's how Armstrong seems to feel, at least. He told O'Shaughnessy the platform "could be a huge unlock for the crypto economy" and projected it could power "a thousand new startups."
- Coinbase is also reportedly eyeing a tokenized capital raise. It is reportedly preparing for an initial public offering (perhaps using blockchain-based tech) in mid-2021, according to Fortune.
- A spokesperson for Coinbase declined to elaborate on Armstrong's comments.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.