Coinbase chooses Goldman Sachs to handle upcoming IPO

According to a new report, Coinbase has approached investment banking company, Goldman Sachs, to manage its IPO. Just yesterday Coinbase had said that it  had “confidentially submitted” a draft registration statement with the United States Securities and Exchange Commission. The crypto company expected the draft of the “Form S-1” to become effective after the SEC completed its review process.

Earlier this year, reports stated

that Coinbase had initiated plans for a stock market listing and that the firm could go public with its own IPO. However, for this to occur, the listing would need SEC approval. Coinbase could pursue the listing early next year, if not in 2020, Reuters said.  

Additional details are yet to be known but the report further stated that Coinbase co-founder, Fred Ehrsam, previously worked at Goldman Sachs, between 2010 and 2012. This was before he founded the exchange with CEO Brian Armstrong. Ehrsam left Coinbase in 2017 and now remains as its board member. 

On the other hand, the crypto sector is not entirely new for the investment banking firm. To date, Goldman has invested in Circle and Bitgo among other crypto companies.

Coinbase is a prominent exchange in the US with $1 billion daily volume in Dec-20, according to crypto analytics firm Messari. Following Coinbase’s IPO announcement, Messari valued the company at $28 billion:

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Following Coinbase's IPO announcement, we value the company at $28 billion. Coinbase is one of the most prominent exchanges with $1 billion daily volume in Dec-20.
Check out our model and edit it to your own assumptions. https://t.co/BQeSAxUd5j

— Mira Christanto (@asiahodl) December 18, 2020

Moreover, Head of Institutional Sales at Coinbase, Brett Tejpaul, shared that the firm reported a $14 billion increase in institutional assets under custody since April. He said the company’s assets under custody were $6 billion when he joined which then grew to $20 billion today.