adds background on confidential deposit, cryptocurrencies

January 28 (Reuters)Coinbase Global Inc will be publicly traded via a direct quote, the U.S. cryptocurrency exchange said in a blog post on Thursday. (https://bit.ly/3pwsUs7)

Reuters reported in July that the company was considering going public via direct listing.

A direct quote allows insiders to sell instantly and without the support of traditional underwriters, which can be a recipe for potentially high volatility early in the trade.

Coinbase said in December that it filed a confidential request with the U.S. Securities and Exchange Commission (SEC) to go public, a move that would make it the first major U.S. cryptocurrency exchange to be publicly traded.

If the SEC approves Coinbase’s listing plans, it would represent a historic victory for cryptocurrency advocates vying for general public approval.

Many cryptocurrencies have struggled to gain the trust of traditional investors and the general public due to their speculative nature and potential for money laundering.

Founded in 2012, Coinbase is one of the world’s best-known cryptocurrency platforms with over 43 million users in over 100 countries.

(Reporting by Noor Zainab Hussain in Bangalore; Editing by Vinay Dwivedi)

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