Every Christmas And Birthday Rolled Into One For Coinbase This Week, XRP Time?
Cryptocurrency exchange Coinbase is about to face what looks to be its most important week yet. Itâs like every Christmas and Birthday rolled into one big celebration, for an exchange that is about to receive a license to trade securities.
We now know through an official announcement by Coinbase that they have been given permission to go ahead with the purchase of three groups; Keystone Capital Corp, Venovate Marketplace Inc and Digital Wealth LLC. These acquisitions mean that Coinbase will be considered to have broker-dealer status, which in turn means that Coinbase would finally have a license to offer cryptocurrency trading for coins that are considered to be securities. This also includes coins with no official security status as of yet, and thus includes coins that are on the fence, much like XRP.
This opens up Coinbase to a whole host of new opportunities. XRP being a major one, but there are tonnes of other avenues that Coinbase could explore with this announcement. This week is important as it is during this week that we expect the announcement to materialise. We will see Coinbase complete the purchase of the aforementioned groups and in turn, could see some new listings almost straight away.
Historically, when coins are listed on Coinbase, their price skyrockets and therefore we can expect a change in the landscape of the markets during this week. Whether or not XRP will be listed straight away is up for debate, though we do expect to see this sooner, rather than later off the back of this new chapter for Coinbase.
According to Venturebeat, this move is very important:
âCoinbaseâs potential move into security tokens is significant because it is one of the most important exchanges in the cryptocurrency industry. To give you an idea of its, in May of this year, it had 20 million user accounts. That is about the size of Fidelity investments. It also has the largest cryptocurrency trading volume of any exchange in the U.S. New token listings on Coinbase lead to massive rallies in the price. This happened last December with Bitcoin Cash and more recently with Ethereum Classic. Even the speculation of a potential listing could be enough to impact price. For example, Rippleâs XRP rallied at the beginning of the year on speculation it could be listed.â
Moreover, the President of Coinbase, Asiff Hirji, last month is noted to have said:
âUltimately, we can envision a world where we may even work with regulators to tokenize existing types of securities, bringing to this space the benefits of cryptocurrency-based marketsâ â âlike 24/7 trading, real-time settlement, and chain-of-title.â
See more for yourself, here.
This is big news for Coinbase and thus, is one to watch throughout the week. Any new announcements made by the company are sure to ease the markets along and thus, this is something we are very excited about.