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Comment by koolba | Hacker News Reader

> If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license, an alternative trading system license (ATS), and a registered investment advisor (RIA) license.

> ...

> This is all being enabled by our acquisition of Keystone Capital Corp., Venovate Marketplace, Inc., and Digital Wealth LLC.

If I’m understanding this correctly it’s very impressive. They were able to acquire existing companies with those licenses and convince the SEC to let them retain and expand them to cover the entire business. It’s like the reverse acquisitions of small banks to enable a new player into the tightly regulated bank market (which is an incredible pain to get new approval for), but now applying it to crypto.

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This is relatively standard practice in the broker-dealer space. (It’s how I started my first company.)

Interesting.

Slight off-topic looking at your profile, it says "Trade private equity stakes in technology companies". Curious how does that work?

You need to know a lot of people. Connect buyers and sellers. Maybe look for a cofounder of a successful business who wants out and find a strategic VC or other firm who wants in. Should be able to understand the product and build/show the value proposition in numbers. Maybe that means looking at financials and building projections for your clients.

What is your e-mail address?

Will one of y'all just post whatever this person emails you?

Reachable via any of my accounts tied to keybase if that helps (including the email tied to my key). Thanks for accommodating the widening list!

Interested too. simone at fabrica dot city

triumphantcoder at google's mail dot com

also interested, zencash64 at gmx dot com

jk at ptscientists dot com

mail at asselinpaul dot com

knouroozi at gmail dot com

simon at craftworks dot at

seantommurray@gmail.com

Adding to this: you have to do a lot of research to make sure you get a 'clean' BD, though. There's a real risk that the company you bought it from has hidden future litigation. If they were engaging in illegal activity and the SEC takes a long time to build the case, you now own the civil liability for those actions.

Tzero (overstock.com) did the same thing last year so Coinbase isn’t even the first to do this in the crypto space.

tZERO looks like it's raising money from investors. That seems a bit different than listing SEC regulated crypto currencies.

https://www.startengine.com/tzero?no_newsletter=1

> The tZERO token will pay 10% of adjusted gross revenue to token holders on a quarterly basis, subject to board approval and the conditions outlined in the offering memorandum

I want to compete with Angels and VC's for investment in early stage companies. Where can I do that? I don't want to invest in a fund and AngelList isn't "democratizing" shit.

They bought a broker dealer and ats prior to their current capital raise. They want their token to be the first of many sec regulated crypto assets on their regulated exchange.

As JumpCrisscross said, this is very common. Shortcuts the process considerably and there are a fair amount of failing B/Ds out there.

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