Americas largest cryptocurrency exchange has just announced its deployment of a new platform called Coinbase Ventures to invest in smaller companies. According to the Coinbase Blog, they will “be providing financing to promising early stage companies that have the teams and ideas that can move the space forward in a positive, meaningful way”.
The new platform will use a combination of Coinbases expertise alongside a provision of building strong relationships to help channel the development of smaller companies, that can influence and benefit cryptocurrencies.
Originally established in 2012, boasts a market cap of over $100 billion and claims to have over 10 million users across the world, making it the largest exchange platform available. It is in their mission to open the doors of the financial system to a space that is not regulated by large financial institutions, that the new Coinbase Ventures will step in.
The new page has already seen a $15 million investment, according to CNBC, and is looking to expand considerably going forward as it strives to enhance the potency of the digital sector. The site is essentially underlined as a fund that will offer investments to these smaller crypto companies. Whats more, according to the Coinbase Blog, “You may also see us invest in companies that ostensibly look competitive with Coinbase”, in a bid to appeal to a wider, perhaps healthier, expansion of cryptocurrencies in general. However according to the Business Insider, the investment fund will so far not provide contributions to security tokens.
The news comes amidst the ever increasing growth of Coinbase itself. After recently introducing an index fund, this new announcement signals further attempt to widen their financial scope.
More importantly, the implications that the new investment fund might have upon the cryptocurrency community has great potential. In encouraging the growth of further, smaller startups in the industry the investment could, in turn, enhance the stability of the entire market itself. The move could also encourage other investors to step into the cryptocurrency game and essentially points to more levelling in a continually volatile market. In light of increasing regulations and decreasing coin values, one could hope the new Coinbase Ventures is an olive branch within cryptosphere.