Coinbase's acquisition of KeyStone Capital will clear the path for to operate as a regulated broker-dealer, with the potential to offer security tokens down the road. The acquisition also coincides with a push by Coinbase to expand its professional trading platform, which it recently rebranded as Coinbase Prime, and to offer financial custodial services for institutions.
The cryptocurrency service Coinbase announced on Wednesday it had acquired Keystone Capital Corp, a California-based financial firm, in a move that will clear the path for it to operate as a registered broker-dealer. The acquisition puts the San Francisco-based company on a firmer regulatory footing with the Securities and Exchange Commission, and positions it to offer both traditional equities and a broader range of blockchain-based securities. Coinbase, which also simultaneously announced that it had acquired Venovate Marketplace and Digital Wealth, did not disclose the purchase price. While Coinbase is the largest U.S. cryptocurrency exchange, it currently offers only four types of virtual currency, including Bitcoin and Ethereum. The limited selection reflects the company’s cautious approach at a time when the SEC had indicated it regards most digital tokens as securities that must be registered.