Coinbase, the world’s leading exchange by trade volume, has recently disclosed plans to put in cryptocurrency worth half a billion dollars to its ledger.
Brian Armstrong, the chief of Coinbase, revealed that the firm’s board had endorsed the cryptocurrency spending spree in a tweet on the 20th of August, further stating that the firm is also planning to buy into 10 per cent of all profits produced into virtual assets moving forward.
The CEO also implied that the firm is aiming to boost the percentage of the profit it allocates to crypto purchases in the long run.
A blog entry published by the firm on the same day declares that the shift will be establishing the exchange as the first exchange-traded to hold DeFi (decentralized finance) tokens, Ether, and Proof-of-Stake assets on its ledger.
The news highlights Coinbase’s dedication to making long-standing investments in the cryptocurrency sector. It states that their investments will be deployed constantly over a multi-year window. It will also be employing a dollar-cost averaging approach. It stated that they are long-term investors and will divest only under a certain set of circumstances, i.e., an asset deregistering from their provided platform.
The blog post further adds that potential investments may be advised by its clients’ holdings, implying Coinbase may include an asset to its ledge and in the case of users making significant custodial deposits of a provided digital currency.
The platform is set to make its trades on indirectly involved platforms or through its retail trading desk to steer clear of creating situations of conflict with their clients.
As reported by Crypto Treasuries, as of now, Coinbase is the eighth-biggest publicly traded firm by Bitcoin assets on its ledger and the greatest exchange by value of Bitcoin owned in its exchequer.
As stated in the announcement, the update about new expenses on crypto comes out merely a day after the platform concluded its Japanese inauguration in a joint venture with Mitsubishi UFJ Financial Group (MUFG). The platform will also be gaining access to Mitsubishi’s clientele of around forty million clients as part of their contract.
Coinbase also revealed that same day that it had aggregated a war chest worth 4 billion USD in cash to make preparations for regulatory expense as well as the next cryptocurrency winter.