Coinbase Wants Wall Street to Resolve Its Bitcoin Trust Issues

From Bloomberg

A cheer went up in the San Francisco offices of cryptocurrency exchange Coinbase Inc. when bitcoin breached $10,000 in November. But the 225-employee startup has a goal beyond price. The company wants to use digital money to reinvent finance.
In Coinbase’s version of the future, loans, venture capital, money transfers, accounts receivable and stock trading can all be done with electronic currency, using Coinbase instead of banks.

But first, Coinbase, already popular with individual traders, needs to legitimize itself -- and bring in revenue -- by convincing big money managers to trust it enough to trade on its exchange. That means giving institutions what they want, including a safe place to stash their cryptocurrency. It also has to reassure regulators that bitcoin isn’t a silk road for hackers, money launderers and tax evaders.

“How do we get institutional money to flow into this space?” said co-founder and Chief Executive Officer Brian Armstrong, 34. “It would help grow the whole industry. It would create more trust, surety, maybe reduce the volatility of it over time.”

Founded in 2012, Coinbase’s offices still buzz with startup charm: a beer fridge, a game room, plenty of company swag. A cowbell calls employees to weekly “code school” on Fridays, and the guest wifi password is “openfinancialsystem!”

I signed up to Coinbase this week to do a little arbitrage. Their overburdened verification system was brutal and I was limited for a week. What I learned though is there is very real demand right now. People are signing up in droves.

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using Coinbase instead of banks.

At what point will they realize they are building a bank, I wonder...

Banks are generally easier to deal with than Coinbase at this moment

Lots of people at the banks waiting to take your call.

No one will be taking customer service calls at Coinbase before 2020

Sir can i resteem your post?

Thanks for the information ,I am new to Steemit!

From your title, I thought you were going to go down the path that Coinbase is complaining about GBTC, the BTC trust.

I've been on coinbase since 2015, and I've never had an issue. It was strictly for bitcoin at the time. They added ETH to GDAX , then Litecoin fell in line shortly after that. I believe coinbase should double down on what they do best, and that is picking winners out of a world of losers. I truly believe my great grand children will use coinbase one day.

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