Coinbase Receives $300 Million in New Funding, Aims to Add “Hundreds of Cryptocurrencies”

Once again, the cryptocurrency exchange giant Coinbase makes headlines as they announced $300 million in new funding.

According to a blog post by Asiff Hirji, President and COO of Coinbase:

Today, we’re pleased to announce that Coinbase will add an additional $300 million of investment at a valuation of over $8 billion to accelerate the adoption of cryptocurrencies and digital assets.

This additional funding comes from a Series E equity round led by Tiger Global Management and included participation from Y Combinator Continuity, Wellington Management, Andreessen Horowitz, Polychain and others.

What Will the Funding Be Used For?

Coinbase has stated that they plan to use this financing to accelerate 4 key areas of business.

The first being “Global Expansion.” Coinbase plans on building infrastructure to onboard fiat currencies from around the world, and enable the exchange of said fiat to crypto in regulated markets.

Additionally, Coinbase made a bold claim of offering many more crypto assets.

As stated in the Coinbase press release:

We see hundreds of cryptocurrencies that could be added to our platform today and we will lay the groundwork to support thousands in the future.

In addition to the building of infrastructure to onboard fiat currencies, Coinbase will continue to develop utility applications for crypto. Such developments include the recently announced support for a stablecoin (USDC).

The firm will also continue to develop and improve their Coinbase wallet.

The final and perhaps most anticipated use of the $300 million funding will be the “Bringing of Institutions to Crypto.” Coinbase plans on adding various features, as well as additional crypto assets to their Custody Offering to bring in the big money from institutions.

With these goals in mind, Coinbase reaffirmed their commitment to be a crypto-first company:

Coinbase is, and will remain, a crypto-first company… We see Coinbase’s growth as validation that the ecosystem will only continue to grow in size, influence and impact — ultimately ushering in a more open financial system for the world.

How Could This Development Impact the Growth of the Crypto Market?

If Coinbase is able to successfully implement the developments and ideas the $300 million funding is supposed to support, the effect on the crypto market could potentially be substantial.

For instance, if Coinbase were to list hundreds, if not thousands, of cryptocurrencies to their platform, the coins listed would receive a considerable amount of exposure. As one of the largest and most trusted cryptocurrency exchanges in the world, Coinbase has over 20 million users and over $150 billion has been traded on the platform.

The recently-added coin 0x is an example of the “Coinbase Effect.” ZRX saw a 40% jump in price upon being listed on Coinbase, highlighting how greater exposure and liquidity can impact a coin’s value.

Also, if Coinbase implements new features that more easily facilitate the onboarding of fiat currencies and features that attract institutions, even more money will be able to easily flow into the crypto markets.

Do you think that Coinbase will utilize the funds the way they say they will? Does Coinbase has the potential to turn this bear market around? Let us know in the comments below.