With the recent approval of its clearinghouse, Coinbase has reached a defining moment for the exchange. The permission to run its own operation is a step toward more innovation and regulatory progress in the crypto space, one that may well alter the way clients engage with digital assets.
Streamlined Services and Enhanced User Experience
For its customers, this translates into a more straightforward and transparent experience. Direct management of settlements through an in-house clearinghouse means fewer obstacles than one might encounter with a third party, and a wider array of products on offer. There is also the prospect of reduced costs and better availability, given that direct clearing eliminates the need for outside providers.
Having broker, exchange, and clearinghouse licenses all in one place gives Coinbase the kind of flexibility it needs to introduce new offerings and quickly respond to market demands.
Eliminating Third-Party Barriers and Enabling Innovation
The most recent issue of Bitcoin Magazine argues that Coinbase’s new status has removed the kinds of impediments that come from relying on third parties. In a sense, it is a regulatory breakthrough, one that opens the door for the firm to roll out new products in full compliance for its institutional and retail clients. With the need to answer to outside clearing partners gone, there is far more room for innovation at the company.
One could call it a strategic move in an environment where crypto platforms are finding that operational autonomy and clear regulation matter more than ever. By having all the requisite licenses in hand, Coinbase has put itself in a position of strength to be at the forefront of next-generation services in the space.
Tokenization: The Next Big Step for Finance
One might call tokenization the most important development in finance since Wall Street moved from paper to electronic trading, as a Bitcoin Magazine guest put it. The use of blockchain and tokenization has given both institutional and ordinary investors a way to access markets on their own terms, cutting out traditional intermediaries and the associated expense for a more efficient process.
Coinbase is among the firms working with established financial institutions to bring such technology to the mainstream. With the clearinghouse now approved, one can anticipate an acceleration in these kinds of alliances and the rollout of new products, which will only serve to cement Coinbase as a leader in the crypto-finance revolution.
Every call by Bitcoin Magazine and how it played out — in the BuyCrypt bloggers tracker.
Source — Bitcoin Magazine: https://www.youtube.com/watch?v=rX3WKY41zHc
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