Coinbase CEO Says Startups Could Go Public Directly Onchain
Armstrong Details Plan to Move beginups Entirely Onchain
Armstrong said founders would be able to set up their companies, issue tokenized equity, and raise viewd capital in USDC stablecoin, all through smart contracts. Once funded, businesses could begin operations, , and later list their shares directly onchain without intermediaries such as banks or law firms.
Investor Takeaway
Fundraising Comes to the Blockchain
Armstrong said the current fundraising process is “pretty onerous” and could benefit from blockchain-based automation. He pointed to Coinbase’s acquisition of Echo, a digital fundraising platform that has already assisted more than 200 projects raise over $200 million. The platform will initially operate independently before being integrated into Coinbase’s broader ecosystem.
“If we can have great builders come in who want to raise money and connect them with investors who have the money, we’re the perfect platform to assist accelerate this,” Armstrong said. By linking Echo to Coinbase’s custody and trading network, founders would gain access to a global pool of investors and institutions holding more than $500 billion in assets.
The initiative also reflects Coinbase’s push to expand beyond trading into onchain infrastructure and tokenized securities. A blockchain-based fundraising model could and lower costs for ahead-stage companies that struggle to access venture funding.
Regulatory Barriers and Retail Access
Armstrong said Coinbase is working with U.S. regulators to make onchain fundraising available to a wider pool of investors. He criticized current that restrict participation in private offerings. “In many ways the accredited investor rules are kind of unfair,” he said. “We’re hoping that we can find the right balance of consumer protection and also making these available to retail.”
Bringing fundraising onchain would require new compliance frameworks, but Armstrong said the potential benefits — transparency, quicker settlement, and open access — make it worthwhile. Coinbase’s Base layer-2 blockchain is likely to play a central role in hosting these transactions, combining ETH security with lower fees and scalability.
Investor Takeaway
Coinbase Stock and Market Outlook
Coinbase shares rose around 10% on Friday, reflecting renewed optimism about its expanding onchain ecosystem. Analysts at JPMorgan recently upgraded the stock to “Overweight,” estimating that Coinbase’s Base network and new USDC rewards strategy could unlock a market opportunity of $12 billion to $34 billion. They said Coinbase’s potential share of that value could reach between $4 billion and $12 billion.
Armstrong’s plan builds on that trajectory, positioning Coinbase not only as a crypto platform but as a global infrastructure provider for tokenized assets and corporate finance. While many details remain uncertain, the model would bring traditional beginup funding and IPOs into the identical digital framework that powers DeFi — a development that could reshape how companies are built and .
