The Implications of The Coinbase Direct Listing

This week, the Coinbase direct listing made plenty of noise in both the traditional finance and digital asset worlds. While it’s surely major news for what is currently the biggest company in crypto, what everyone really wants to know is what the COIN listing means for the crypto/blockchain market and the financial industry at large.

Here’s how we see it


It’s taken the traditional finance world a long time to recognize that crypto and bitcoin are not passing trends. While companies like Microstrategy and Tesla are putting bitcoin on the books and Goldman is planning to offer BTC exposure to wealth management clients, the Coinbase direct listing is another story.

The fact that a financially successful, well-known, and regulated crypto company has been listed on a public stock exchange should legitimize the digital asset industry in the eyes of the public. Investors who are likely to invest in other aspects of the crypto/blockchain ecosystem will be attracted to the market while generating further mainstream exposure.

With this news, and as BTC and ETH continue to hover around all-time highs, we’re likely to see more institutional investors and products with risk management, like Two Prime, enter the space. These investors and products, and the additional attention they garner, will drive Coinbase’s evolution into an institutional financial services company characterized by traditional functions like trading and investment banking services. In fact, they’ve already begun hiring to fulfill these services.

Coinbase’s listing on Nasdaq marks a new phase for both a marquee company in the space and the crypto/blockchain industry as a whole.