Coinbase is a cryptocurrency business providing trading, custody, and developer services. Founded by Brian Armstrong and Fred Ehrsam, it began as a hosted bitcoin wallet in 2012 and listed on Nasdaq in 2021. Its activities include the Base network and a commercial relationship with Circle, the issuer of USDC.1234

HistoryReport an error

Armstrong joined Y Combinator's summer 2012 programme with a project initially called Bitbank. Y Combinator's retrospective describes Coinbase's early product as a hosted bitcoin wallet intended to simplify access for nontechnical users, and records Ehrsam joining as co-founder. On 14 April 2021, Armstrong announced Coinbase's Nasdaq listing.12

Products and custodyReport an error

Coinbase describes its business as serving consumers through financial applications, institutions through Coinbase Prime, and developers through the Coinbase Developer Platform. Its product catalogue includes spot and derivatives trading, custody, staking, and wallet infrastructure. These services should be distinguished from the operation of an underlying public blockchain: holding an account with a company and holding a key-controlled onchain account are different arrangements.35

Coinbase announced Base on 23 February 2023 as an Ethereum layer 2, initially built using the OP Stack. The announcement described the network as a way to support applications beyond the exchange itself. The separate Base article covers its technical and governance history.6

USDC relationshipReport an error

In August 2023 Circle and Coinbase announced a revised arrangement: Circle would assume full responsibility for USDC issuance and governance, Coinbase would take an equity stake in Circle, and the companies would continue sharing interest income from reserves. This separates the role of issuer from Coinbase's distribution and commercial interests.4

Incidents and regulatory proceedingsReport an error

On 27 February 2025 the SEC announced a joint stipulation to dismiss its civil enforcement action against Coinbase. The commission expressly said its decision reflected a change in regulatory approach, rather than an assessment of the merits of the allegations.7

On 15 May 2025 Coinbase disclosed that attackers had bribed overseas support personnel to obtain customer information for impersonation scams. The company said the stolen information did not include passwords or private keys, refused a US$20 million ransom demand, and committed to reimbursing customers tricked into sending funds to the attackers. Those statements describe Coinbase's account and commitments at disclosure.8

TimelineReport an error

Date Event
2012 Coinbase participates in Y Combinator's summer batch1
2021-04-14 Nasdaq listing2
2023-02-23 Base announced6
2023-08-21 Revised Circle and USDC arrangement announced4
2025-02-27 SEC announces dismissal stipulation7
2025-05-15 Customer-data incident disclosed8

See alsoReport an error

ReferencesReport an error

  1. ^ a b c Y Combinator (14 April 2021). Coinbase from YC to IPO. https://www.ycombinator.com/blog/coinbase-from-yc-to-ipo 

  2. ^ a b c Armstrong, B. (14 April 2021). COIN — it's only the beginning. https://www.coinbase.com/en-gb/blog/coin-its-only-the-beginning 

  3. ^ a b Coinbase. About Coinbase. https://www.coinbase.com/about 

  4. ^ a b c Circle and Coinbase (21 August 2023). Ushering in the next chapter for USDC. https://www.circle.com/blog/ushering-in-the-next-chapter-for-usdc 

  5. ^ ethereum.org. Ethereum wallets. https://ethereum.org/en/wallets/ 

  6. ^ a b c Coinbase (23 February 2023). Introducing Base. https://www.coinbase.com/blog/introducing-base 

  7. ^ a b SEC (27 February 2025). SEC announces dismissal of civil enforcement action against Coinbase. https://www.sec.gov/newsroom/press-releases/2025-47 

  8. ^ a b Coinbase (15 May 2025). Protecting our customers — standing up to extortionists. https://www.coinbase.com/blog/protecting-our-customers-standing-up-to-extortionists