By Alesia Haas, Chief Financial Officer, Coinbase
We believe in the crypto economy, a future in which economic transactions (buying, selling, spending, earning) will be based on crypto assets. Our products strive to bring that vision to life by making cryptocurrencies trustworthy and easy to use for customers around the world.
Today, most of Coinbase’s corporate financial transactions, such as how we pay our vendors, employees, or invest corporate cash, are still heavily weighted in fiat currency. We are in a strong position to lead by example and redouble how we can enable the adoption and utility of cryptocurrencies, starting with the way we operate our business.
To that end, we announce a change in our investment policy. We have committed to investing $ 500 million of our cash and cash equivalents. Moving forward, we will also allocate 10% of quarterly net income to a diverse portfolio of crypto assets. This means that we will become the first publicly traded company in keep Ethereum, proof-of-stake assets, DeFi tokens and many other crypto assets compatible with trading on our platform, in addition to Bitcoin, on our balance sheet.
Our crypto asset investment allocation will be driven by our aggregated crypto custody balances, which means our clients will drive our investment strategy. Our investments will be implemented continuously over a period of several years using a dollar cost averaging strategy. We are long-term investors and will only divest in certain circumstances, such as the delisting of an asset from our platform. All operations will be executed through our counter or outside of our exchange to avoid any conflict of interest with our clients.
We can increase our allocation over time as the crypto economy matures. We believe that in the future, more and more companies will keep crypto assets on their balance sheet. We hope that by incorporating more crypto assets into our own corporate financial practices, we can take another step towards building a more open crypto economy.
Coinbase Updates Investment Policy to Increase Investments in Crypto Assets was originally published in The Coinbase blog on Medium, where people continue the conversation by highlighting and responding to this story.