Following peers such as Binance and OKEx, Coinbase may soon jump on to the Initial Exchange Offering bandwagon. During a panel discussion at CoinDesk’s Invest: Asia conference, Coinbase’s head of institutional sales in Asia, Kayvon Pirestani confirmed that an Initial Exchange Offering (IEO) platform is being considered by the exchange. In addition, Coinbase may also launch a proprietary exchange token soon.
Unlike a regular ICO, an IEO is an increasingly popular crowdfunding tool because an exchange acts as the trusted broker in the token sale. It is important that exchanges vet only solid projects so that their reputation does not take a beating in the market. The exchange usually handles the KYC and AML compliance on behalf of the project which is selling tokens.
While an IEO platform launch may not be that far away, regulated securities offerings may still take some time to become a reality. Pirestani added that security tokens will be launched when there will be greater market demand.
(Image Credit: Coinbase Blog)