Coinbase CEO: “Put the entire pre-IPO process on-chain”…unveils vision for an on-chain IPO

Coinbase Chief Executive Officer (CEO) Brian Armstrong has again floated the idea of conducting the entire initial public offering (IPO) process on a blockchain—an “on-chain listing.” He said it is an alternative aimed at simplifying capital-raising procedures and improving investor access.

According to Cryptopolitan, a cryptocurrency-focused media outlet, Armstrong said in a post on X (formerly Twitter) on the 26th that “we need to make capital formation much easier,” adding that “if companies could list fully on-chain, it would make early price discovery easier and significantly reduce costs.”

Armstrong argued that current regulations keep high-growth companies private for extended periods, with early-stage gains concentrated among private equity and certain institutional investors. “When there is no liquid market in a company’s early stages, price action at the time of an actual listing is also more likely to be distorted,” he said.

The on-chain listing concept is not new. In an interview last October, Armstrong laid out a vision of moving a startup’s entire life cycle on-chain—from incorporation to fundraising and listing. At the time, he said, “if a startup opens an account and simply hits a ‘raise funds’ button, materials are delivered to investors and capital can flow in via smart contracts.”

Armstrong also pointed to inefficiencies in the traditional fundraising process. “Every founder I know says fundraising is an extremely grueling process,” he said, adding that “it usually takes two to three months, and during that period everything else comes to a halt.” He continued, “you have to go through countless meetings where 19 out of 20 times you get rejected.”

He also noted that Coinbase has been working with regulators on on-chain capital-raising frameworks. While acknowledging the need for investor protections for retail participants, Armstrong said the current accredited investor regime limits access to growth opportunities for less-wealthy individuals. He explained that Coinbase attempted some on-chain structures during its 2021 listing, but the regulatory environment at the time was not ready to accommodate them.

The remarks also align with recent trends in global capital markets. In the third quarter of last year, the global private investment market expanded to $310 billion through 156 large deals, underscoring the continued influence of private capital. At the same time, in emerging markets such as India, IPO preparations—particularly among technology companies—are progressing rapidly.