Coinbase to acquire crypto custody technology firm Unbound Security

Coinbase is continuing its acquisition spree. The U.S.-based crypto exchange operator is now set to acquire Unbound Security, an Israeli crypto custody infrastructure firm specializing in multiparty computation (MPC) technology.

MPC technology provides security as well as usability for crypto assets. In other words, it combines the benefits of offline ("cold") storage and online ("hot") wallets.

"This technology is critical in making NFTs [non-fungible tokens], DeFi [decentralized finance] and other Web3 applications possible as it negates the need for offline ('cold') storage," a Coinbase spokesperson told The Block. Coinbase plans to integrate MPC technology across its retail and institutional products over time, it said.

The deal's financial terms haven't been disclosed, but Unbound Security has raised at least $40 million in external funding to date and has a headcount of over 70, according to its LinkedIn page. The deal is subject to customary closing conditions and is expected to close in the coming months, said Coinbase.

The acquisition, once completed, will also establish Coinbase's presence in Israel as the company will be setting up a "tech center of excellence" in the country. The Unbound Security team will form the core of this new research facility, which Coinbase plans to grow over time.

The move follows Coinbase's similar announcements in Singapore, India, and Brazil, where the company has been hiring engineering talent recently.

In a similar move earlier this year, Coinbase rival Gemini also acquired a crypto custody infrastructure firm specializing in MPC technology called Shard X.

As for Coinbase, the Nasdaq-listed company has acquired over a dozen firms since its inception in 2012. Most recently, it has acquired crypto wallet provider BRD, crypto data aggregator Zabo, crypto data and analytics platform Skew, staking infrastructure firm Bison Trails, and AI-powered customer support platform Agara.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You may also like