What happened?
Coinbase announced a $375 million acquisition of Echo and also bought the UpOnly NFT for $25 million, while CEO Brian Armstrong outlined a plan to move the entire startup lifecycle onchain. Echo will initially operate as a standalone platform and its Sonar product will be integrated into Coinbase’s ecosystem to handle token creation, cap table management, fundraising and secondary trading. Armstrong said Coinbase is working with regulators and expects the first onchain public listings within a few years, aiming to make fundraising faster, cheaper and more transparent.
Who does this affect?
Founders and early-stage startups could see big changes — they’d be able to incorporate, raise capital and manage shares using blockchain tools instead of slow, paper-heavy processes. Retail and accredited investors, Coinbase customers and crypto projects stand to gain easier access to deals and faster settlements, though accredited rules and SEC oversight still matter. Exchanges, banks, lawyers and regulators will also be affected as onchain market infrastructure shifts where capital flows and how compliance is enforced.
Why does this matter?
If Coinbase connects its huge customer base to onchain fundraising, it could create strong network effects that drive more capital into tokenized startups and boost liquidity across crypto markets. Lower fees, instant USDC settlements and streamlined cap tables would speed up capital formation and broaden investor access, likely increasing demand for stablecoins and exchange-listed tokens. But regulatory uncertainty and the potential return of ICO-like fundraising mean market volatility could rise until clear rules and safeguards are in place.