Popular cryptocurrency exchange Coinbase has raised a fresh $300 million in a Series E financing round, bringing the company valuation to $8 billion.
Coinbase plans to use the funding to “accelerate the adoption of cryptocurrencies,” as it plans to remain the “entry-point into crypto” for millions of investors, according to a published blog post.
The new investment round was led by investment firm Tiger Global with Y Combinator Continuity and Andreessen Horowitz, with others participating. In August 2017, Coinbase was valued at $1.6 billion, after receiving a $100 million from a Series D round led by Institutional Venture Partners investors (IVP).
Rumors of the funding had turned up in early October with Mike Novogratz, the CEO at cryptocurrency-focused merchant bank Galaxy Digital, arguing that the rumors added legitimacy to the cryptocurrency market.
“Here’s the poster child of the crypto space worth $8 billion — that’s a real company, and Tiger’s not a flake of an investor. These are smart, savvy guys,” he had stated at a finance conference, at the time.
“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,” Coinbase Chief Operating Officer Asiff Hirji remarked in the post.
It will also build its infrastructure to support regulated, fiat-crypto trading across the world, such as the launch of British pound sterling (GBP) trading pairs on Coinbase Pro and Prime.
The digital asset platform also plans to focus on “utility applications” for cryptos such as the launch of its USDC stablecoin, fully collateralized by the U.S. dollar and supported by Coinbase and blockchain firm Circle.
Based on a Fortune report, Coinbase has been mostly profitable, but the slump in crypto prices has affected trading volumes on exchanges across the board. Reduced trading volumes equate to reduced fees, which has driven the company to search for alternative sources of revenue.
Flush with cash, the platform will have its eyes on the custodial fees from institutional investors whose cryptocurrencies are kept with the digital asset platform. The platform also announced the addition of a wide range of crypto assets for its custodial services in August 2018 and the launch of a suite of tools and services that institutional investors can rely on when trading crypto.
“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,” Hirji concluded.