Coinbase, Circle Vie to Create Brokerages for Crypto Securities
Two of the largest U.S. cryptocurrency exchanges are in a race to build the nation’s first regulated exchanges for tokens deemed to be securities, potentially appeasing watchdogs threatening to reign in the multibillion-dollar market. Coinbase Inc., one of the largest cryptocurrency exchanges, said Wednesday that it’s buying a trio of firms including Keystone Capital, a broker-dealer registered with the Financial Industry Regulatory Authority. The announcement came just hours after Bloomberg reported that Circle Internet Financial Ltd., one of the world’s most valuable cryptocurrency platforms, intends to pursue registration as a brokerage and trading venue with the U.S. Securities and Exchange Commission so it can help investors buy and sell tokens deemed to be securities. Circle also plans to seek a federal banking license to provide more services to customers.