$1.6 billion cryptocurrency exchange Coinbase is launching a venture fund to create an ‘open financial system for the world’

source
Glassdoor/Coinbase
  • Coinbase, the cryptocurrency exchange, is launching a
    venture fund, the company announced in a blog post Thursday.
  • The San Francisco-based company has been building out
    its business outside trading, breaking into custody, and now
    investing.
  • For now, it will not invest in security tokens.

Coinbase, the cryptocurrency trading platform valued at $1.6
billion, is launching a venture fund that will invest in
companies changing the world of finance, the company announced in
a blog post Thursday.

Coinbase Ventures will provide “financing to promising
early stage companies that have the teams and ideas that can move
the space forward in a positive, meaningful way,” the post said.

“Here at Coinbase, we’re committed to creating an open
financial system for the world,” the company said.

It stands to reason that Coinbase is jumping on the VC bandwagon,
since the company is likely sitting on a ton of cash. As reported
by Recode, the company’s revenues in 2017 were over $1 billion.

To be sure, Coinbase isn’t the only crypto exchange making money
hand-over-fist.
As Bloomberg reported
, the top ten largest crypto exchanges
rake in $3 million in fees a day.

Still, Coinbase has been one of the most aggressive exchanges
when it comes to venturing outside of trading.

The firm’s general manager Dan Romero recently told Business
Insider’s Becky Peterson that it is hiring more C-level
executives, who Romero hopes will transform the company into a
behemoth touching all aspects of crypto.

“We’re trying to build a Google-like company for the
cryptocurrency space,” Romero said at the time.

Coinbase, which first started offering services for Wall Street
firms in 2014 via its GDAX exchange, has recently been gunning
for more institutional business in crypto. GDAX is at the core of
that mission.

But the firm has also announced the launch of Coinbase Custodian,
a custodian product for the crypto space which the firm is trying
to scale to be the “State Street of cryptocurrency.”

As Business Insider
previously reported
, the service will provide institutional
clients a method to store their cryptocurrency that offers the
same level of security as custody banks such as State Street.
It’ll only be available to customers with at least $10 million
in deposits.

GDAX is also working on other products and services, including
advanced order types and products tied to market data.

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