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Negotiations Underway: IEX and Coinbase To Launch Federally Approved Digital Asset Market

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According to reports, according to sources, Katsuyama, chairman of IEX Stock Exchange, and his employees are currently negotiating with Coinbase, a publicly traded cryptocurrency e

Negotiations Underway: IEX and Coinbase To Launch Federally Approved Digital Asset Market

According to reports, according to sources, Katsuyama, chairman of IEX Stock Exchange, and his employees are currently negotiating with Coinbase, a publicly traded cryptocurrency exchange, to create a federally approved digital asset market.

Source: IEX is negotiating with Coinbase to create a new regulated exchange

Outline

1. Introduction
2. Background of IEX and Coinbase
3. Significance of Federally Approved Digital Asset Market
4. The Partnership between IEX and Coinbase
5. The Future of Digital Asset Market
6. Skepticism and Concerns of the Partnership
7. Conclusion
8. FAQs

The Article

Cryptocurrency enthusiasts must be pleased to hear the latest news that has shaken the crypto market. According to reports, Katsuyama, chairman of IEX Stock Exchange, and his employees are currently negotiating with Coinbase, a publicly traded cryptocurrency exchange, to create a federally approved digital asset market.

Background of IEX and Coinbase

Before delving deeper into the partnership of IEX and Coinbase, let’s discuss each party separately. IEX, or the Investors Exchange, is a US-based stock exchange launched in 2016, which focuses on slowing down high-frequency trading, making it more fair, and helping long-term investors. On the other hand, Coinbase is one of the largest cryptocurrency exchanges globally, founded in 2012, to provide a platform for users to buy, sell, and store cryptocurrency, including Bitcoin, Ethereum, and Litecoin.

Significance of Federally Approved Digital Asset Market

A federally approved digital asset market would mean that the trading and exchange of cryptocurrencies would be regulated by the US government or a regulatory body, granting more legitimacy to those involved, providing better consumer protection, and paving the way for more extensive institutional adoption of cryptocurrencies. As of now, due to the lack of regulation, cryptocurrencies are considered highly speculative and are often prone to volatility in their prices.

The Partnership between IEX and Coinbase

The reasoning behind the partnership between IEX and Coinbase is that IEX seeks to establish a new platform that will offer cryptocurrency trading services. In comparison, Coinbase aims to capitalize on IEX’s successful track record of challenging the status quo with an innovative business model, which could cement the collaboration’s success.
Another factor that could play a significant role in the partnership’s success is IEX’s image as a “clean” platform in the financial market dominated by other exchanges known for high-frequency trading. It could enable Coinbase to build trust among the broader investor audience who have been hesitant to invest in cryptocurrencies.

The Future of the Digital Asset Market

The development of a federally approved digital asset market could mark a significant turning point for the cryptocurrency industry. The lack of regulation, market volatility, and security issues have held back institutional investors from participating in this rapidly rising innovation, with many still on the sidelines. However, the establishment of a federally approved digital asset market with the backing of the US regulatory bodies could encourage institutions to finally take part in this booming industry.

Skepticism and Concerns of the Partnership

Of course, not everyone is pleased about the potential partnership between IEX and Coinbase. Some critics believe that the move represents an unnecessary distraction for both parties, with IEX being better off focusing entirely on its core business and Coinbase concentrating on improving the existing infrastructure.
Furthermore, the partnership might raise concerns regarding the centralization of a decentralized asset, with some purists stating that regulation runs counter to the supposed independence of cryptocurrencies.

Conclusion

In conclusion, the potential partnership between IEX and Coinbase is a significant development that could change the cryptocurrency industry. By providing a regulated avenue for cryptocurrencies, it could open the doors for institutional participation in the market, which could usher in more significant investments and drive the market further. However, only time will tell if the partnership can succeed.

FAQs

Q1. Why is a federally approved digital asset market significant?
Ans: It would provide regulation, better consumer protection, and recognition of cryptocurrency’s legitimacy in the eyes of regulators and institutional investors.
Q2. What is IEX?
Ans: It’s a US-based stock exchange that focuses on slowing down high-frequency trading and making the markets more fair for long-term investors.
Q3. When was Coinbase founded?
Ans: Coinbase was founded in 2012.
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