Digital currency exchange Coinbase has reportedly approached Goldman Sachs to lead its upcoming initial public offering — a move that could bolster the appeal of cryptocurrencies to a broader mainstream audience.
Citing two sources familiar with the matter, Business Insider reported Friday that Coinbase is looking to Goldman Sachs to handle its public filing. No additional details were provided.
Coinbase has been linked to Goldman Sachs through Fred Ehrsam, the exchange’s co-founder who previously worked at the bank as a trader. Business Insider reports that Ehrsam worked at Goldman between 2010 and 2012 before establishing Coinbase with current CEO Brian Armstrong.
Ehrsam left the exchange in 2017 but maintains a board position.
The report surfaced a day after Coinbase confirmed its intent to go public in a draft registration sent to the Securities and Exchange Commission, or SEC. Based on its latest valuation in 2018, Coinbase was worth $8 billion. Crypto analytics company Messari says Coinbase could be worth $28 billion after its public offering.
Coinbase is the preferred exchange of many newcomers to the digital currency space. The platform has also raked in billions of dollars in institutional capital since the spring, which broadly coincides with the arrival of so-called smart money.
Institutional investors have likely been the primary catalyst behind Bitcoin’s (BTC) record-breaking rally thus far. The flagship cryptocurrency catapulted toward $24,000 on Thursday en route to new highs.
This story is still in development.