Cryptocurrency wallet and exchange provider Coinbase recently published a blog post in which it reveals it’s highly interested in providing capital to new startups in the blockchain and cryptocurrency field.
In an interview during CNBC's 'Fast Money' Asiff Hirji, the company's chief operating officer (COO), stated the company seeks to provide a venture fund for new enterprises which align with Coinbase and its values.
Referred to as the 'Dow of Cryptocurrencies', Coinbase is positioning itself as a filter of security for its users, with only reliable cryptos being added to its available coins to buy and sell.
While the proposed venture fund is regarded as 'De minimis' relative to the total size, it still equates to a starting point of $15 million and is expected to begin seed-stage investments by next week.
Per Coinbase’s blog post, the company many even invest in potential competitors:
"You may also see us invest in companies that ostensibly look competitive with Coinbase. There may be a nuance to the way these startups are building out their products. Or, in some cases, we may be comfortable investing in companies that are potentially competitive, because it’s in everyone’s interest to see the ecosystem innovate. We’re taking a long-term view of the space, and we believe that multiple approaches are healthy and good."
This is not the only step Coinbase has taken in not only expanding its reach but in providing a greater level of legitimacy for the cryptocurrency ecosystem. The company has also engaged the US Securities and Exchange Eommission (SEC), among other regulators, with hopes of becoming a fully-fledged brokerage firm.
These developments come at a time in which the SEC has been taking action against fraudulent ICO operators like Centra Tech, a crypto project endorsed by celebrities like Floyd Mayweather and DJ Khaled.
Recently, Coinbase revealed it’s set to allow users to withdraw funds from Bitcoin forks.