Leading U.S. cryptocurrency exchange Coinbase announced it would acquire securities dealer Keystone Capital in a bid to become a fully SEC-regulated broker dealer, the company said Wednesday.
"If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA)," Coinbase President and Chief Operating Officer Asiff Hirji said in a statement. "This step forward is being made possible by our acquisition of a broker-dealer license."
Coinbase, which landed at the No. 10 spot on the 2018 CNBC Disruptor 50 list, will still need regulatory approval to operate under the Keystone licenses.
The San Francisco-based firm is best known for its popular trading platform, which offers four cryptocurrencies. The Keystone acquisition could help Coinbase expand its offerings, and eventually allow them expand into other non-crypto financial products.