As per an announcement on their blog, Coinbase is exploring the possibility of listing new digital assets on its exchange. The assets include successful Binance Initial Exchange Offerings (IEOs), namely Harmony (ONE), Matic Network, and Algorand amongst others. Privacy coin DASH is also being considered for listing and it’s surprising that hasn’t happened yet, August 5, 2019.
New Approach to Listing
With the amount of regulatory scrutiny in crypto, Coinbase is taking precautions to ensure they don’t run into trouble with securities regulators. Back in the day, Coinbase would probably conduct a fairly in-depth review and eventually list a token; now they’ve announced their desire to explore the possibility of listing said tokens, given they adhere to technical nuances. Additionally, listings will be done on a jurisdictional basis.
Coinbase states that their goal is for customers to have access to around 90 percent of the total market cap by adding strong assets that are currently outside their platform. These projects are evaluated based on security, compliance, and the individual project’s vision.
The review process is mostly a technical and compliance review that may be bound to regulatory approval depending on the origin nation of the project. Customers will see public API’s for these coins show up. This doesn’t mean the coin has been listed, it is simply a sign of engineering efforts in progress.
Coinbase expects to make such an announcement in the coming months.
Abstaining from IEOs
Coinbase has surprisingly abstained from IEOs, but this is almost definitely because they are regulated in the United States. The IEO buzz has picked up and has the potential to eclipse the 2017 initial coin offering (ICO) bubble.
Now that the SEC Commissioner has publicly declared that the U.S. wants to legitimize tokenization, Coinbase may be in the run to become an exchange endorsed by the government. This wouldn’t be surprising as they often receive flak for censoring individuals and reporting them to regulators if their address has received any coins from an address linked to illicit activities.
IEOs have outshone security token offerings (STOs) as the new standard for token issuance, but if the SEC actually wants to create a platform for token issuance, security tokens might be back in favor.