Coinbase, a Nasdaq-listed cryptocurrency exchange, says it aspires to be “the Amazon of assets” by listing every legal crypto asset available. The firm has identified two significant long-term trends impacting its operations.
Coinbase Is Considering Adding All Legal Cryptocurrencies on Its Platform. Coinbase disclosed its strategy at Tuesday’s Q2 2021 earnings conference. Brian Armstrong, CEO of Coinbase, said, “We at Coinbase constantly consider the longer-term cycles of cryptocurrency. We are always monitoring long-term trends.” He highlighted two significant developments impacting Coinbase.
“The first one is that we’re continuing to see this trend of people using crypto for more and more things beyond trading,” Armstrong detailed. He added that “For example, we now have 1.7 million users doing staking in crypto, which is a way to earn a yield on your assets.”
“The second major trend we’re witnessing is Coinbase embracing decentralization,” the CEO said, elaborating: We aim to be the Amazon of assets, listing every legal cryptocurrency asset available. Today, there are thousands of them. They will ultimately number in the millions. This is all related to the topic of decentralization acceptance.
Armstrong added, “We’ve developed a very rigorous process for evaluating the compliance, legal, and cybersecurity risks associated with these assets to ensure they satisfy those requirements, but once we’re satisfied with that, we want to list different assets that fulfill that listing criterion.”
He said, “Bitcoin and Ethereum still account for about 50% of our trading activity, while the other 50% is made up of the long tail of all the other assets we offer.” No single one of those long-tail assets contributes for more than 10% of our trading volume, indicating that the asset universe is really diversifying.”
The Coinbase CEO stated that his platform added 22 new currencies in the second quarter, including dogecoin (DOGE). He stated: Our overarching philosophy is that we are agnostic about which assets will prevail; we just want to promote any asset that is lawful for our clients.
In Q2, the firm generated $2 billion in revenue and established relationships with prominent individuals and businesses such as Elon Musk, SpaceX, and PNC Bank. At the end of June, the firm stated its intention to create a cryptocurrency app store akin to Apple’s.
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