The vice president says Coinbase’s venture arm will increase profits in the coming year

Over the past seven years, Coinbase’s venture capital arm has quietly invested in over 500 startups. Now some of these ventures may pay off. Shan Aggarwal, vice president of corporate and business development at Coinbase Ventures, revealed that he expects the venture capital firm to start contributing to the company’s overall revenue in the coming months, even though the ventures are a “long-term play.”

“It usually takes more than five years for these companies to mature and see significant exits,” Aggarwal said Wednesday at the Messari Mainnet Conference in New York.

“We’re getting to the point now where, especially as we start to diversify some of our positions and reuse that capital, we’ll start to see it show up on our P&L and then become a bigger part of our P&L. balance sheet,” he added.

While the Coinbase executive declined to reveal which specific ventures have proven fruitful, he said the company has begun to “selectively exit” positions it has held for five or more years. “We had a few outings. We haven’t actually disclosed them publicly yet, but I’m sure they will start showing up in our public financial listings,” he said.

Coinbase Ventures has invested in more early-stage cryptocurrency and blockchain startups than any other cryptocurrency VC fund, typically making initial investments ranging from $1 million to $5 million. According to PitchBook, the second most prolific group is the Digital Currency Group, which had 251 transactions as of August 30.

Coinbase Ventures was launched in 2018 as a branch of the largest cryptocurrency exchange in the US, and its goal is to support cryptocurrency and blockchain startups. The VC has played a role in developing many well-known cryptocurrency names, including Bitwise, Consensys, Dune, Securitize, OpenSea, Polygon, and Zora.

Aggarwal says Coinbase Ventures offers more to cryptocurrency startups than other VC firms due to its more than 10 years of experience in the cryptocurrency industry. “We can bring something different because we can connect founders or portfolio companies with the heads of our different products. We can help facilitate partnerships,” Aggarwal said.

In addition to venture profits, Coinbase has diversified revenue through products like Base, an Ethereum-based Layer 2 network that seeks to speed up transactions. Its other products include the USDC stablecoin, the no-deposit Coinbase wallet, and the quintessential cryptocurrency exchange.

This story was originally published on Fortune.com