Coinbase cryptocurrency exchange has stated that it would buy Unbound Security, a cryptographic security firm in a deal that would also see the company open a research lab in Israel.
Coinbase announced on Tuesday that it would buy Unbound to obtain access to its cryptographic security expertise and to create a presence in Israel.
Unbound’s work in multi-party computation was noted in the exchange as providing customers with the “nearly impenetrable nature of cold, offline storage, combined with the frictionless convenience of hot, online wallets.”
Coinbase stated, “We’ve long identified Israel as a hotbed of excellent technical and cryptography expertise, and we’re pleased to continue to grow our team with some of the strongest and brightest brains in these sectors.”
“The Unbound Security team will serve as the foundation for this new research centre, which we intend to expand over time.”
Following its public debut on Nasdaq in April, the major crypto exchange made its first acquisition, Unbound, which valued the company at above $100 billion. BRD, a crypto wallet provider, stated last week that it will be joining Coinbase to “help accelerate web3 adoption” and give “strong knowledge in self-custody.”
The terms of Coinbase’s acquisition of Unbound were not immediately disclosed. Agara, an artificial intelligence-enabled support platform with operations in India, data aggregator Zabo, and data analytics platform Skew are among the companies the exchange has already purchased, with each deal potentially worth millions of dollars if not more.
As cryptocurrency values remain erratic, Coinbase stated in August that it has amassed a $4 billion war fund to prepare for a potentially severe crypto winter, which would be fueled by lower crypto retail trading volumes and greater operating expenses due to regulatory constraints. In the third quarter of 2021, the company recorded revenue of $1.2 billion and earnings of $406 million.
