San Francisco-based crypto exchange Coinbase, the “first pure” crypto company, has been approved as a Visa principal member. This membership will enable the exchange to make it further easier for consumers to spend cryptos in day to day life.
This membership, “is another milestone in the mainstream adoption of crypto as a genuine utility. We will continue to build on this relationship with further initiatives which will make interacting with crypto as seamless as possible for our customers.”
Coinbase first started working with Visa in 2019 as it launched Coinbase card, a Visa debit card in the UK. The debit card is now available in 29 markets allowing people to spend 10 cryptos in “millions” of merchant locations.
“Following the success of Coinbase Card, we are proud to be the first company in the crypto ecosystem to be granted Visa principal membership,” reads the official announcement.
With this membership, they will be able to add more features to the card including support in more markets.
A Global, Open Financial System that Drives Innovation & Freedom
Market condition is what determines the profitability of the crypto-related businesses. With the crypto market back to rebounding after the winter of 2018, the year is looking good for crypto-related businesses in 2020 following a positive 2019.
The leading exchange is also on target and is estimated to top $800 million in revenue. Eight years since Coinbase first started, the company has started 35 million accounts till now and presides over $21 billion of assets.
In a recent interview with Fobes, Coinbase co-founder and CEO, Brian Armstrong shared his motivation behind starting this business, “I wanted the world to have a global, open financial system that drove innovation and freedom.”
But Coinbase isn’t just an exchange, its success actually comes from acting like a bank. In the past two years, the exchange has quadrupled its staff to 1,000, out of which 41 belongs to security and 0 from compliance which is expected to grow to 70 by quarter’s end, and has offices in New York, Dublin and Tokyo.
Another factor behind the exchange’s success is regulatory compliance. Conbase sends 1099-K reported to the IRS on traders who have been involved in 200 or more trades having a combined value of $20,000 or more.
“If you are an individual and you want to store your own cryptocurrency, you’re not a financial service business,” said the 37-year-old billionaire. “And there are companies, including us, who provide tools for people to store their own cryptocurrency and use it.”
With the market back in bull mode, the business is surely growing. Coinbase reportedly handled $80 billion of transactions last year. However, the next two years according to industry commentators is expected to be yet another bull rally that will see the crypto market to another high which will bring in a new wave of investors and revenue for these businesses.