While crypto markets are still in a limbo, Coinbase is seemed to be all merry in expanding its business. According to the latest report released by Dair research, having doubled the assets on their exchange versus a year ago, Coinbase is finding right partners to move towards its goal of having an “Open Financial System”
Coinbase’s Multi-Pronged Growth Path Initiatives
According to the facts presented in the research, Coinbase has already secured multiple licenses through mergers and acquisitions and looks like it will soon dash out a list of banking products which will be orchestrating a second-layer banking infrastructure with on-chain channels. The chart below shows how Coinbase is acquiring the needed functional products via partnerships and acquisitions
The report also states that Coinbase is using its alumni, who have started their own crypto operations, very well in terms of partnering with the company to get the needed products. To quote from the report
“Former employees, many of whom have moved on to set up other cryptocurrency operations haven’t been shy to share their corporate alma mater. And Coinbase has not been secretive with their ties to former employees. In fact, earlier this year it was Coinbase’s own President and COO”
The research further establishes that Coinbase could have easily launched their own branded dollar-pegged cryptocurrency but its partnership with Circle for USDC clearly gives out the modus operandi of the exchange which is to create a network effect and onboard as many users as possible within the ecosystem. To quote from the report
“With USDC, the exchange will be looking into developing payment channels in order to become a useful method of payment, not just a token used by traders alone, as other dollar-pegged cryptocurrencies and stablecoins. Onboarding merchants will be a challenge though, not only for Coinbase, but the entire cryptocurrency space with no real regulatory and tax framework in place.”
A statement of Brian Armstrong, the man at helm for Coinbase, was also quoted in the report when he had spoken about companies strategy last year
“Our definition of critical mass [for institutional traders] is approximately the daily trading volume of ten large publicly traded companies or $5B in daily trading volume”
Coinbase seems to be progressing well with its plans and one can clearly see it taking huge strides towards its vision
Do you think Coinbase has a right approach towards its vision? Do let us know your views on the same?
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I am an associate content producer for the news section of Coingape. I have previously worked as a freelancer for numerous sites and have covered a dynamic range of topics from sports, finance to economics and politics.