This is the kind of news that underscores the rapid transition from a Wild West market to a well funded, respectable and SEC-regulated market. Coinbase, a San Francisco-based firm, by buying Keystone Capital, a securities dealer, has clearly transitioned into a recognized entity that institutional investors will take seriously.
The most important point of this purchase is that Coinbase will be allowed and of course be capable of offering blockchain-based securities within the bounds and oversight of the US Securities and Exchange Commission – the SEC – moving blockchain into the big leagues as we say. Keep in mind that high profile transactions like must be approved and the approval becomes validation. One would think that more firms will acquire SEC-regulated firms.
Coinbase and other firms will likely be tokenizing existing types of securities, turning a wide range of products into 24 hour traded securities. The global reach following such acquisitions could turn San Francisco into a major trading hub in the future.
Of course, the ongoing intervention by regulators will achieve several objectives, including the future participation by institutional investors, who are in fact, some of the most conservative on the street. We expect their participation to increase as a global framework is spelled out by regulators. Again, the G20 was a step in the global coordination and framework world as central bankers and financial minsters study these new technologies and build out guidelines for safe and secure usage.
Look for more acquisitions to accelerate this summer and into fall. Crypto markets and exchanges will be busy as they mature.