Over the past three years, the startup has created the Zabo API to connect users to any crypto exchange platform, wallet, protocol, or account. Coinbase is expected to report second quarter results on August 10 with expected earnings per share of 2.57 and expected revenue of $ 1.83 billion
Coinbase is acquiring a cryptocurrency data aggregator, Zabo, according to an announcement posted on a blog on Wednesday.
Zabo started in 2018 with a mission to create new tools to integrate cryptocurrency into traditional financial services, co-founders Christopher Brown and Alex Treece wrote in the blog.
Over the past three years, the startup has created the Zabo API, which is a single application programming interface that connects users to any crypto exchange, wallet, protocol, or account.
“The cryptocurrency industry is still early days and there are a lot of foundational technologies that need to be built to make the stack work for traditional participants. Ultimately, the technology has to be safe and usable even as we see more breakthrough innovations in the cryptocurrency space, ”Brown said in an email to Blockworks. “We believe this acquisition will help stimulate the development of key technologies. “
Zabo was unable to share the value of the deal or what the integration into Coinbase’s platform will look like. However, Brown said the acquisition will take place “as soon as possible,” and the two companies are in the final stages of the process.
Coinbase’s mission “to increase economic freedom around the world is bold and important,” Brown said. “Once we understood that there was a mutual benefit to be gained from our team and our technology, it became an easy decision for us,” he added.
In March 2020, Zabo announced a $ 2.5 million fundraiser led by Moonshots Capital and was joined by Blockchange Ventures, Castle Island Ventures, Digital Currency Group, CoinShares, Tezos Foundation, Capital Factory and others.
In the past few months alone, Coinbase has launched USDC High Yield Crypto Savings Accounts, a premier brokerage service, and expanded to borrowing bitcoin as collateral, among other developments.
The first half of 2021 was one of the busiest times on record for crypto, Brian Foster, a member of the Institutional Sales, Commerce and Core Services team at Coinbase and Coinbase Ventures, said in the report. review H1 2021 of the company. The first six months saw new all-time highs in asset prices, user adoption and trader activity, Foster said.
In the first quarter of 2021, Coinbase achieved net revenue of $ 1.597 billion, up 792% from the $ 179 million in the previous year quarter. During the first quarter, Coinbase also acquired Bison Trail, which will allow businesses to send and store cryptocurrencies, accept crypto payments, and grow their businesses with a crypto-native infrastructure, he said. he stated in a letter to shareholders.
At the time, the company said the rapidly expanding crypto economy is creating new challenges as competition intensifies in the market as new groups join the space each month. While Coinbase said they welcome these challenges, they said they need to keep moving quickly to meet them through action and growth.
Coinbase is expected to report its second quarter results on August 10 with expected earnings per share of 2.57 and expected revenue of $ 1.83 billion.
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