Former Coinbase CTO: Traditional IPOs and M&A are blocked, and securities token issuance (STO) on blockchain may become a new financing path

PANews February 19th news, former Coinbase Chief Technology Officer Balaji said that as traditional IPOs and M&A paths are blocked, securities token issuance (STO) on blockchain may become a new window for technology companies to raise funds. He pointed out that the SEC's regulatory rules make it difficult for small companies to IPO, and the recent tough stance on large-scale mergers and acquisitions has further restricted the way for startups to exit. This policy environment may weaken the flow of capital and competitiveness of the startup ecosystem.

However, he believes that policy changes in the crypto space have opened the door for STOs, and the new government's supportive attitude towards cryptocurrencies makes blockchain-based financing models more attractive. STO not only reduces the cost of going public in small businesses, but also provides startups with a source of capital independent of large tech companies. Balaji stressed that this model is in line with the government's goal of wanting small businesses to remain independent, while also providing global investors with opportunities to participate without having direct corporate control.