The top U.S. cryptocurrency exchange plans to spend $500 million plus 10% of future profits in a broad portfolio of digital assets that mirrors its customers’ holdings.
The $500 million Coinbase plans to invest in crypto does not mean it will just be adding Bitcoin to its balance sheet.
“I expect this percentage to keep growing over time as the cryptoeconomy matures,” he said. “Hopefully over time we can operate more of our business in crypto - today it is still a mix.”
Following Customers Into Altcoins
In a heavily highlighted section of that blog, Hass added: “This means we will become the first publicly traded company to hold Ethereum, Proof of Stake assets, DeFi tokens, and many other crypto assets supported for trading on our platform.”
More than that, Haas said Coinbase’s “customers will drive our investment strategy,” for the $500 million plus 10%.
The amount and type of altcoins held by its customers will provide Coinbase with an investment map, she added.
To avoid competing with its own customers, Haas said Coinbase will make its new investments via its over-the-counter (OTC) desk or off of its own exchange.
“We are long term investors and will only divest under select circumstances, such as an asset delisting from our platform,” Haas noted.
Coinbase would like to increase its crypto investments “as the cryptoeconomy matures,” Hass said. “We believe that in the future, more and more companies will hold crypto assets on their balance sheet. We hope by incorporating more crypto assets into our own corporate financial practices, we can take another step towards building a more open cryptoeconomy.