Coinbase crypto exchange will buy cryptographic security company Unbound Security. This step will enable the United States firm launch a research facility in Israel. In a November 30 blog post, Coinbase stated that it would be purchasing Unbound to gain access to its cryptographic security experts. The acquisition is also a strategic move for the crypto exchange to establish a presence in Israel.
The Coinbase exchange cited Unbound’s work in multi-party computation to offer investors and users the “virtually impenetrable nature of cold, offline storage, with the frictionless convenience of hot, online wallets.” Coinbase added:
“We’ve long recognized Israel as a hotbed of strong technology and cryptography talent, and are excited to continue to grow our team with some of the best and brightest minds in these fields. The Unbound Security team will form the nucleus of this new research facility, which we plan to grow over time.”
The Unbound purchase is the latest among many for the crypto exchange after its public listing on Nasdaq in April 2021. The listing gave Coinbase a roughly $100 billion valuation. In the past week, the team at BRD cryptocurrency wallet provider confirmed that it would join Coinbase aiming to “help accelerate Web 3.0 adoption” and offer “deep expertise in self-custody.”Buy Bitcoin Now
Coinbase Makes Strategic Investments
Coinbase never disclosed the terms of the Unbound purchase. Notably, the exchange has already acquired companies like data aggregator Zabo, Agara which is an artificial intelligence-powered support platform that operates in India, and Skew data Analytics Company, with each of these agreements probably valued in the millions if not more.
As crypto markets remain highly volatile, Coinbase said in August that it had managed to stockpile a war chest worth around $4 billion in cash. The stockpile is meant to shield it from a possibly harsh cryptocurrency winter, pushed by decreased crypto retail trading volumes and increased costs of operation arising from many regulatory hurdles.
The firm reported revenue of around $1.2 billion in the third quarter of 2021, with profits reaching $406 million.