Cryptocurrency exchange Coinbase Global Inc. recently announced the addition of Shopify founder and CEO Tobias “Tobi” Lütke to its board of directors as Coinbase expands its eCommerce offerings and looks to offer nonfungible tokens (NFTs).
If he’s approved by the board later this week, Lütke will be added to Coinbase’s existing five board members.
Shopify merchants can accept payments through Coinbase, according to a Coinbase blog post by CEO and co-founder Brian Armstrong.
“Tobi’s experience as a founder & CEO, scaling his business from a small, niche online marketplace into what has become a critical backbone of global eCommerce, will help guide Coinbase as we seek to bring crypto to more people and businesses around the world,” he said.
Coinbase has 73 million verified users. Its shares are down about 30% so far in 2022 amidst a continuing struggle for cryptocurrency since Bitcoin reach its all-time high in November.
Lütke, who started out as a computer programmer, launched an eCommerce site focused on selling snowboarding gear that eventually became Shopify in 2004. The company had $4.6 billion in sales in 2021. Coinbase is expected to report $7.3 billion in bookings for 2021 when it reports full-year earnings in February.
Related: SEC’s Campaign Against Crypto Lending Grows Beyond Coinbase
In September, Coinbase pulled its planned Coinbase Lend product, which was going to offer a 4% annual percentage yield, after the Securities and Exchange Commmission (SEC) threatened to sue over it. Only after Coinbase said its competitors offered similar products was it allowed to continue its offering.
“By preventing Coinbase from launching the same thing that other companies already have live, they’re creating an unfair market,” the company told the SEC. In December, Coinbase unveiled a similar lending product in 70 other countries.
The average FDIC-insured bank savings account paid 0.06% annual percentage yield.
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