Coinbase CEO: The acquisition of Echo is just the beginning, and in the future, we will enable traditional companies to have on-chain IPOs.

Coinbase CEO Brian Armstrong stated during an interview on October 22 that he believes entrepreneurs generally find the traditional fundraising process lengthy and painful. The company hopes to make the idea of “pressing the fundraising button and having the funds immediately available” a reality by acquiring the on-chain fundraising platform Echo. He emphasized that this would make the fundraising process fairer and more transparent, and it could expand global entrepreneurial opportunities, further enhancing economic freedom.

Acquisition of Echo, aiming to make on-chain fundraising more efficient and fair.

Armstrong first discussed the goal of the acquisition of Echo, stating that it is to bring fundraising on-chain, while making the entire fundraising process more efficient, fair, and transparent. He pointed out:

“Every entrepreneur feels that the fundraising process is very tedious, taking 2 to 3 months, during which everything else must come to a halt. They have to attend countless presentations, getting rejected 19 times before succeeding once. And there are also piles of legal fees.”

He pointed out that Echo has helped over 2,000 to 3,000 projects raise more than $200 million, making it the leader in the on-chain fundraising field.

Community crowdfunding and high-quality screening, becoming the Echo fundraising model.

Armstrong explained that Echo currently focuses on community fundraising and adopts a partial screening mechanism to prevent the situation where bad currency drives out good currency. He stated:

“Echo selects high-quality projects, allowing the community to participate directly. Coinbase currently has approximately $500 billion in assets under custody for clients, and these users are looking for good investment opportunities.”

Armstrong pointed out that Coinbase can connect “high-quality entrepreneurs” and “well-funded investors” directly through Echo, creating a powerful network effect.

From registration to listing, it is necessary to achieve one-click service on-chain.

Next, Armstrong also described the dream blueprint of “on-chain entrepreneurship”. In the future, entrepreneurs will only need “two people, a laptop, and a dream” to complete everything on the Coinbase platform:

Opening a company account ( may be in the form of a DAO ).

Press the fundraising button to upload presentations and videos.

Instant payments through the USDC smart contract.

Funds are credited immediately, no need to wait for wire transfers or for lawyers to run processes.

One-click activation of crypto payments, subsequent financing, and final listing.

He stated:

“One day, companies will be able to directly IPO on-chain. The entire entrepreneurial process from startup to listing can be on-chain, allowing for greater economic freedom and encouraging more entrepreneurs to bravely start their journey.”

Easing regulations to assist, allowing general retail investors to participate in on-chain fundraising.

Armstrong stated that currently, these fundraising efforts are still primarily from cryptocurrency companies, but in the long run, all businesses will raise funds this way because it is more efficient.

He pointed out that the current crowdfunding and accredited investor regulations of the U.S. SEC have provided a legal basis for some on-chain fundraising. Coinbase is working with the SEC to advance new regulations that would allow retail investors to participate under protective mechanisms.

“Current regulations protect retail investors, but they also prevent them from participating in early-stage entrepreneurial opportunities. This is actually a bit unfair,” Armstrong emphasized.

I hope that while ensuring investor protection, more ordinary people can also have the opportunity to raise funds.

The SEC's innovation and openness, the on-chain IPO is expected to become a reality.

The host asked: “Has any company actually gone public on-chain yet?” Armstrong stated that there hasn't been a traditional IPO using this method yet, but it's just a matter of time.

“When Coinbase went public in 2021, I really wanted to try to let some of the equity trade on-chain, but the SEC wasn't ready at that time.”

He revealed that the current attitude of the SEC is positive and willing to innovate, and he expects that within the next two to three years, the first company to be listed both in traditional markets and on-chain will appear. In the long run, a fully on-chain IPO is not impossible.

On-chain fundraising currencies are primarily stablecoins such as USDC.

When discussing the main currencies for on-chain fundraising, Armstrong pointed out that most startups still raise funds using stablecoins like USDC for easier pricing and contract signing. However, he also mentioned that many companies convert a portion of their funds into BTC as a reserve against inflation.

“Like Coinbase itself, also including BTC on the balance sheet, this is gradually becoming the new normal in corporate financial management.”

After the fundraising is completed, the entrepreneur just needs to “click the button to sign the agreement,” and the funds will automatically be credited through the smart contract.

Enable startup fundraising to be activated with one click, allowing everyone to start a business freely.

At the end of the entire interview, Armstrong emphasized that future startup fundraising will be as simple as pressing a button. He hopes that through the combination of Echo and Coinbase, “on-chain fundraising” will become a new starting point for global entrepreneurship and ultimately realize the vision of allowing more people to start businesses freely and fundraise freely.

(Coinbase acquired the private placement platform Echo for $375 million, seamlessly connecting the ICO to the exchange pipeline)

This article Coinbase CEO: Acquisition of Echo is just the beginning, in the future allowing traditional companies to also have on-chain IPO first appeared in Chain News ABMedia.