In 2015 Cryptocurrency exchange Coinbase landed a $75 million investment partially from the New York Stock Exchange, leading the crypto company to be recognised as the most well-funded bitcoin handler at that time. Since then, Coinbase CEO Eric Armstrong has been plotting a series of tactical moves within his ranks and it looks to be paying off. The most recent triumph last week saw an executive from the NYSE jump ship to become Vice President of Finance for the exchange. The crypto world must be pleased with itself.
It has been reported that Eric Scro spent eight and a half years working for the New York Stock Exchange as Head of Finance, before which his financial career spanned a further 18 years.
The announcement was made on the Coinbase blog on Thursday and celebrates the move, pointing out ‘Eric’s experience and leadership will be invaluable in scaling the business’. The Business Insider has also hailed the move as efforts by the crypto site to become the Google of cryptocurrency, with plans to double the workforce to 500 staff members by this year.
We're excited to have Eric Scro joining Coinbase as Vice President of Financehttps://t.co/4LAmEmdFXb
— Coinbase (@coinbase) March 8, 2018
In light of circulating rumours that further regulations are going to be implemented across the crypto-exchange sphere, the move by Eric Armstrong to recruit the trader suggests that the company is looking to ultimately prepare for this inevitable slap-down. Eric Scro’s recruitment points to the company’s new focus on handling regulatory requirements and the utilisation of, as exclaimed by the blog, ‘the traditional Financial Services sector’ with hopes of ‘providing Coinbase with invaluable insight as it continues to expand into new markets’.
At a time when the likes of the Winklevii are also cosying up to regulators and traditional investment, this comes as another nod to bringing the traditional and crypto markets closer together. Though the the importance of this relationship, which some suggest could even improve the value of Bitcoin, is very clear the move still also signals a blow for the NYSE and critics of cyber currencies role within trade.
This move shows that the exchange isn’t going anywhere. Scro will join the executive team alongside former Twitter exec, Tina Bhatnagar who joined in January and LinkedIn Executive Emilie Choi, who was headhunted just a few days ago. This new recruitment also comes in the same week that Coinbase announced the launch of an Index Fund which allows investors to place holdings in the four largest cryptocurrencies. Armstrong really has been hard at work.