Coinbase, one of the largest cryptocurrency exchanges, is supposedly working on getting banking licenses, as the rumors about their meetings with US regulators spread across the Internet. The Wall Street Journal claims that representatives of the company contacted U.S. Office of the Comptroller of the Currency in early 2018.
If Coinbase obtains banking license, the exchange will be able to significantly expand their product portfolio and demonstrate compliance with all existing regulations. With its’s own banking license Coinbase will also get rid of all intermediary banking partners for its products.
“Coinbase is reportedly considering an application for a national banking license after meeting with US regulators A crypto bank with millions of users would be hard to ignore.”@APompliano
The decision might be motivated by Coinbase’s shift towards institutional investors, which are preparing to enter the crypto markets. Just recently, Coinbase reported working on a range of products tailored to institutional clients, including platforms for more secure storage and deeper liquidity. Moreover, block trades are now available on the company’s professional trading platform GDAX.
Coinbase is not the only platform that is trying to obtain banking licenses. Payments startup ivyKoin wants to get licensed too, that ’s why the company’s representatives met with the Federal Deposit Insurance Corp.