The largest cryptocurrency exchange in the U.S. is going public. Coinbase, which allows investors to buy and sell various digital currencies such as bitcoin, has filed a draft registration statement for an initial public offering with the Securities and Exchange Commission, the company announced today on its blog.

Coinbase will be the largest company focused on cryptocurrencies to ever go public, and will be a good test for others looking to follow suit.

Generic bitcoin picture

Image source: Getty Images.

The IPO announcement comes as bitcoin is on its best run ever. This week, it topped $20,000 for the first time ever, and even surpassed $23,000 at one point.

The bullish market for bitcoin has led some high-profile traders to suggest that one bitcoin could be worth as much as $250,000 or even $400,000 one day. Other institutional investors also view the digital currency as a potential hedge against inflation.

Coinbase makes money by charging fees from investors making trades on the platform, so increased volume in trading benefits the company. It also offers custody solutions for institutional investors looking to trade crypto assets, which it also charges fees for.

Coinbase has more than 35 million users in more than 100 countries, and has seen more than $320 billion of total volume traded through the platform.

In 2018, the company was valued at $8 billion after closing a $300 million round of private funding, according to Tech Crunch.