The pros and cons of a native cryptocurrency are discussed in the exchange’s SEC filing.
The S-1 document from Coinbase has been made public. While the paper addresses primarily the forthcoming stock offering of the exchange, it also explores the possibility of a native cryptocurrency.
Native Tokens are mentioned by Coinbase.
In several pages, Coinbase makes mention of a native blockchain token. Most clearly, the company indicates that it may issue additional capital stock shares in conjunction with consumer incentive or loyalty schemes, even in the form of blockchain tokens.
The company claims that it has approved the issuance of blank check stocks, which its board of directors could use to issue shares of capital stock in the form of blockchain tokens, enforce a stockholder rights scheme, or issue other preferred or common stock shares.
In background, those remarks do not necessarily mean that Coinbase wants to launch its own cryptocurrency. Rather, they say that it is thinking about the ramifications of doing so.
The issuance of a token will impact the price of its stock, Coinbase believes. The company warns that issuing a token could result in major dilution for existing stockholders and cause stock prices to fall or become volatile, among other things.
Is a Coinbase Token on the Horizon?
Despite Coinbase’s doubts, the prospect of the exchange releasing its own cryptocurrency is not fully ruled out.
Many major crypto exchanges, like Binance (Binance Coin), Huobi (Huobi Token), Gemini (Gemini Dollar), KuCoin (KuCoin Token), and OKEx Token, have their own properties (OKB Coin).
In reality, Coinbase is already heavily involved in the USD Stablecoin Coin (USDC). The Centre Consortium that produces the coin was co-founded; it also distributes incentives to holders of USDC who store their balance on the exchange. A new Coinbase cryptocurrency for retail purposes seems rather unlikely in light of those facts.
Given that it does not yet have an asset for retail trading, it is more likely that the company will tokenize its securities for that purpose—though even this is still unclear.