Coinbase has launched the first regulated bitcoin exchange in the United States, dubbing the new service Coinbase Exchange, available for residents in 24 states. The company has worked with federal regulators for more than one year, trying to create guidelines to promote safety for current clients.
The new service is designed "to bring increased stability to the bitcoin ecosystem," which has endured extreme volatility - and recent high-profile bitcoin heists. Coinbase serves as a storage facility so consumers and merchants are able to make transactions, and allows interested buyers to bid on and trade their cryptocurrency stash.
"A proper U.S. exchange that's trustworthy, that's insured, we were the first guys to get insurance on our bitcoin in some form, this will really help bring a dampening of volatility," said Fred Ehrsam, co-founder of Coinbase, while speaking on CNBC's Squawk on the Street. "I think the New York Stock Exchange sees this as an important trend."