Sunday, February 28, 2021
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Goldman Sachs to Lead Coinbase IPO

Fred Ehrsam, Coinbase's co-founder and board member, is a former broker at Goldman Sachs. Coinbase reached out to Goldman Sachs in the expectation that its initial public offering would be led by the bank.

This news comes a day after the exchange reported that it had submitted with the Securities and Exchange Commission a ‘draft registration statement on Form S-1’. Messari Inc, a crypto-currency analytics company, reports that after its IPO, the company will have a valuation of $28 billion. With more than 35 million users, Coinbase reportedly has a trading volume of over $320 billion. While there have been rumors from as far back as July of the company’s plan to go public, the filing was only completed this week.

Interestingly, Fred Ehrsam, the co-founder and board member of Coinbase, is a former Goldman Sachs broker. From 2010 to 2012, Ehrsam worked at the bank before leaving with CEO Brian Armstrong to create Coinbase.

Founded in 2012, the exchange has been the largest crypto business in the United States and a staple for crypto-newbies. Due to institutional spending and a more positive market view of crypto, the firm has taken in billions of US dollars in recent months. The latter has been linked with the latest bullish swing of Bitcoin. 

Generally speaking, coin valuations are at their highest since 2018. This makes it a favorable moment to go public for the trade. 

In reversing their historically bearish position on digital assets, Goldman Sachs has recently joined other financial institutions. The bank named Mathew McDermott to the position of Global Head of Digital Assets on August 6. Goldman said on Friday that gold and bitcoin can “co-exist”, in a complete change from May’s report that stated that cryptocurrencies were “not an asset class.”  It also went so far as to admit that while bitcoin presents no immediate threat to ‘gold’s status as the currency of last resort, there is some substitution occurring’.Coinbase has not provided any information on engaging Goldman Sachs as yet. 

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