TL;DR
- Brian Armstrong proposed that companies go public on-chain to simplify capital raising.
- The lack of early liquid markets distorts pricing, and on-chain offerings would enable lower costs and better value formation.
- Coinbase is working with the SEC on frameworks for non-accredited investors.
Brian Armstrong proposed that companies could go public entirely on-chain. The Coinbase CEO said this model would simplify capital formation and make it easier for new investors to participate.
Armstrong stated that current regulations have forced high-demand companies to remain private for years, concentrating early gains in private equity funds and credit investors.
Armstrong Points to Better Price Discovery and Greater Efficiency
The executive said that the absence of liquid markets during a company’s early stages affects price formation once the firm eventually lists on public markets. In that context, he proposed that on-chain public offerings would allow better price discovery from early stages, lower operating costs, and broader access to capital.
The proposal is not new within Coinbase. In October last year, Armstrong outlined a model in which a startup’s entire lifecycle takes place on-chain. The framework includes company incorporation, fundraising, and the public listing. Under this design, founders could open a Coinbase account for the startup and run these processes through blockchain infrastructure. Armstrong mentioned the possibility of integrating decentralized autonomous organizations to support management and governance.
In the fundraising process, the model envisions founders sending materials to investors and receiving capital directly through USDC smart contracts. The mechanism would replace bank wire transfers and lengthy legal procedures. Armstrong said the system would allow funds to be received quickly and on an ongoing basis.
Coinbase Works With the SEC on Regulatory Frameworks for Investors
The Coinbase CEO also described the traditional fundraising process as lengthy and demanding. He said it typically lasts between two and three months and forces founders to pause other work to conduct multiple investor pitches, resulting in a high rejection rate.
Armstrong said that Coinbase is working with the SEC to design structures that allow non-accredited investors to participate under specific safeguards. He acknowledged that current rules provide consumer protection but limit access for people without significant wealth to high-growth opportunities. He also revealed that he attempted to carry out a partially on-chain public offering for the exchange in 2021, but said regulators were not prepared at the time.
It is worth noting that during the third quarter of 2025, private equity recorded 156 deals totaling $310 billion, according to EY data. Five transactions exceeded $10 billion.
