Insider: Coinbase begins preparations for listing, to become the first listed cryptocurrency exchange in the U.S. as early as this year

Coinbase Inc. has begun preparations for an IPO that could take place as early as this year, making it the first major U.S. cryptocurrency exchange to go public, people familiar with the matter said, Reuters reported.

To successfully go public, Coinbase needs a green light from the U.S. Securities and Exchange Commission (SEC). If the SEC ultimately approves it, it will be a milestone victory for cryptocurrency advocates who have been vying for its support.

While the SEC has said some cryptocurrencies may be considered securities and regulated, the regulator has yet to issue specific guidance on the vast majority of virtual currency offerings. Many cryptocurrency projects have struggled to gain legitimacy and appeal to an investment community and the public wary of the speculative nature of cryptocurrencies and potential money laundering risks.

Coinbase, which was valued at more than $8 billion in its most recent private funding round in 2018, is exploring a public stock offering later this year via a direct listing rather than a traditional initial public offering (IPO) , one of the sources said.

As previously reported by Babbitt, in May this year, JPMorgan Chase began providing services to cryptocurrency exchanges, and Coinbase officially became one of its first customers. At the time, a banker said that JPMorgan Chase's move showed that the bank could benefit from Coinbase's future IPO.

“JPMorgan Chase will receive very little in the way of fees from processing wire transfers and ACH payments, and I expect JPMorgan Chase will receive other benefits from related banking services, additional partnerships with these two companies, and a future Coinbase IPO. For example, Coinbase will support JPMorgan Chase’s planned JPM Coin in the future,” the banker said at the time.

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