CoinBase valued at $8 billion!
October 31, 2018 6:25 am,
CoinBase Custody’s mission is to make a digital currency investment accessible to all financial institution and hedge fund in the world. It has pioneered leading crypto storage techniques and is responsible for the custody of more than $20 billion in crypto assets. The unique features include on-chain segregation of crypto assets, split, offline private keys that require a quorum of geographically distributed agents using cryptographic hardware to sign transactions. Also supports multiple layers of security.
Bitcoin’s value has dropped drastically this year, but the value of the exchange is skyrocketing in the opposite direction. The San Francisco based company announced a $300 million fundraising that puts a new valuation at $8 billion and makes it one of the most highly valued in the United States. The deal marks a massive increase from its previous valuation which had been $1.6 billion as of August 2017.
Its plans to use the funds to accelerate the adoption of cryptocurrencies and digital assets. The company, the best known US cryptocurrency trading platform, is seen as the poster child for the fledgling industry. Its allure among the top venture capitalists has been touted as a positive sign for the future of cryptocurrencies.
Bitcoin and other cryptocurrencies have lost more than 65% of their value since as retail interest wanes. But the company has plowed money back into a master plan to cater to institutional investors. This year, it has launched a suite of offerings for professional investors. It recently partnered with fellow cryptocurrency unicorn Circle to support a US dollar-backed cryptocurrency known as a stable coin. It’s mainly focussed on bridging the gap between fiat money and cryptocurrencies throughout regulated markets and building out its custody offering to bring more institutional funds into space. The new equity should help the company achieve while adding new assets to its popular trading platform.
According to the company, the funds will be used to accelerate the adoption of cryptocurrencies, with plans to build infrastructure to support regulated fiat crypto trading globally and to lay the foundations for the support of thousands of new cryptos in future. The funding will be further be invested in developing proprietary wallet and to create new utility applications such as the platforms recent move to launch a stablecoin, dubbed USDC together with blockchain tech firm Circle. Lastly, it highlights to continue to ease institutional investor exposure to crypto, the firm made bullish claims that improved infrastructure and diversified offerings could unlock $10 billion of institutional investor money sitting on the sideline.