The world's largest cryptocurrency exchange, San Francisco-based Coinbase, is likely to issue a proprietary exchange token (platform currency), said Kayvon Pirestani, head of sales at Coinbase Asia.
Pirestani gave a speech on the evolution of cryptocurrency capital formation at the Invest: Asia conference in CoinDesk on Wednesday. He said that the IEO platform is one of several capital formation tools that Coinbase is currently exploring.
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“We think this is a very interesting opportunity for Coinbase,” Pirestani said.
“In short, Coinbase is not only seriously exploring the IEO field, but also exploring STO (securities token issuance). But I can't officially announce it now.”
The IEO model has been supported by most major exchanges including Bitfinex, Binance, OKEx, Huobi pro and Kucoin. Similar to ICO, IEO is another crowdfunding tool for cryptocurrency startups. The difference is that IEO relies on an exchange as a trusted agent for token sales, which means that the exchange endorses the project – and each exchange on the online IEO issues its own dedicated token (such as Binance's BNB). ) to perform token sales. It is often necessary for the exchange to complete the “Know Your Customer” (KYC) and “AML” checks on behalf of the startup.
Although Pirestani said that news about Coinbase's potential IEO platform may emerge in the "months to come," the progress on regulated securities products in the United States is not going well.
In July 2018, Coinbase announced that it had obtained regulatory approval to acquire several securities companies with broker-licensed licenses, including Keystone Capital Corp., Venovate Marketplace and Digital Wealth LLC.
Regarding the plans for these securities tokens, Pirestani confirmed that Coinbase has obtained a broker-dealer license, but they are “still digesting” these acquisitions and “reusing” the licenses of the companies.
Pirestani also pointed out that the securities token "was talked a lot, but the related transactions are much less", Coinbase will wait for more market demand, and then launch STO products.