Reuters and Paradex just announced that Coinbase has acquired the San-Francisco-based cryptocurrency trading platform.
Paradex is an innovative cryptocurrency trading platform, which allows trading without the creation of account. The platform is powered by the so called “0x protocol”. The protocol enables the fully decentralized service that Paradex offers to its users. The trading between users is established through digital wallets only. The platform does not hold any cryptocurrencies for its customers.
Up until now, Paradex’ operated only in the US. Now, Coinbase plans to expand the platform’s services to other countries in addition to the US, while working on technological improvements and enhancements, as Reuters just reported.
The acquisition price and terms were not made public. However, the acquisition of Paradex is undoubtedly a strategic move for Coinbase. The company currently offers only a handful of digital currencies, such as Bitcoin and Ether. With Paradex on board, Coinbase may be able to increase the number of digital coins it offers to its users.
While Coinbase plans huge strategic changes in Paradex’ operations and expansion outside the US, Coinbase will have to first clear out compliance issues before integrating and / or offering Paradex services to its customer base.
Coinbase has been well known to individual investors. Now, the company is focused on expanding its services and offering a “better” experience for institutional investors in the future. The acquisition of Paradex may allow Coinbase to become more attractive to hedge funds and other institutional investors and high-net worth individuals.