Coinbase, the largest US cryptocurrency exchange, has received approval from regulators to list its shares on Nasdaq, paving the way for a historic win for cryptocurrency advocates.
The decision of the US Securities and Exchange Commission (SEC) promotes the legitimacy of digital currencies, which are increasingly gaining acceptance from the mainstream financial services industry.
Earlier this week, Visa said it would allow the use of cryptocurrency USD Coin to streamline transactions on its payment network, while PayPal allowed US consumers to use their cryptocurrency holdings to pay their millions of global online merchants permitted to.
A successful listing for Coinbase will mark an important endorsement for a sector that has struggled to win the trust of mainstream investors, regulators and the general public.
Coinbase said in a blogpost that its shares had already been declared effective by the SEC on Thursday. The company, which plans to go public via a direct listing, expects its shares to be required to begin trading on the Nasdaq on April 14.
In direct listing, no shares are sold in advance, as in the case of an Initial Public Offering (IPO). The share price of the company is determined by the orders coming on the stock exchange. Advocates argue that a better way is to price new stock rather than an IPO.
In a regulatory filing last month, Coinbase said its stock in the private market traded at a weighted average price of $ 343.58 (about Rs 25,200) through March 15 in the first quarter of 1521, increasing its valuation by nearly 13 times. Is around $ 68 billion (approx. RR. 4.9 lakh crores) in a span of a few months.