Coinbase, the leading cryptocurrency exchange, is starting a Venture Fund, the business declared in a blog article Thursday, April 5th, 2018.
The San Francisco-based firm was building out its company beyond trading, breaking to custody, and currently investing.
For the time being, it won’t invest in safety tokens.
Coinbase, the cryptocurrency trading exchange valued at $1.6 billion, is currently starting a venture fund which can invest in businesses that align with their goals and mission in the cryptocurrency market.
Coinbase Ventures provides “financing to promising early stage companies that have the teams and ideas that can move the space forward in a positive, meaningful way,” the article said.
“Here at Coinbase, we’re committed to creating an open financial system for the world,” the company said.
It makes sense that Coinbase is leaping to the VC bandwagon, because the provider is most likely sitting on a whole lot of money. According to Recode, the organization’s earnings in 2017 were more than $1 billion.
To be certain, Coinbase is not the sole crypto exchange earning money hand-over-fist. As Bloomberg noted the top ten biggest crypto exchanges rake about $3 million in charges every day.
However, Coinbase has never been among the very competitive exchanges in regards to venturing out of trading.
The company’s general director Dan Romero lately told Business Insider’s Becky Peterson it’s hiring a lot more C-level executives, that Romero expects will change the business to a behemoth touching all elements of crypto.
“We’re trying to build a Google-like company for the cryptocurrency space,” Romero said at that moment.
Coinbase, that began providing solutions for Wall Street companies in 2014 through its GDAX market, has been gunning for much more institutional company in crypto. GDAX is in the heart of the mission.
However, the company also has announced the launching of Coinbase Custodian, a custodian merchandise for its crypto distance that the company is hoping to scale to function as “State Street of all cryptocurrency.”
Overall this is a step in the right direction for Coinbase. They seem to be branching out their business to support more projects in the space. I’m glad Coinbase is taking the initiative to do what many other exchanges fail at. They are trying hard to make sure they provide a safe, and regulated space for cryptocurrency. This will ultimately allow cryptocurrency to grow.
