Coinbase Acquires Paradex, Plans to Offer Services Outside U.S.

May 24, 2018 at 20:11

Leading cryptocurrency exchange, Coinbase announced that it has acquired Paradex, a decentralized platform that enable users to trade virtual coins directly with each other.

The company based in San Francisco noted its plans to introduce enhancements to the technology utilized by Paradex to make its services available to customers outside the United States.

Coinbase chief executive and co-founder, Brian Armstrong mentioned that the move is fueled by the company’s “commitment to investing in decentralized infrastructure” aside from efforts to reach more customers.

It can be noted that Paradex does not maintain custody of the tokens on behalf of its users since it allows them to be traded through digital wallets.

However, the parties did not disclose the financial terms in the said takeover.

The acquisition will allow Coinbase to significantly improve the types of cryptocurrencies that it can cater, apart from Bitcoin, Ethereum, Litecoin and Bitcoin Cash.

The company said that the technology will initially be available only for clients outside the U.S. as it is still processing regulatory clearances to operate it legally in the U.S.

Coinbase‘s purchase of Paradex coincided with the exchange’s announcement of a planned overhaul of its trading platform for professional investors that will be known as GDAX. Customers of GDAX will be rolled over to the revamped service called Coinbase Pro before the second half of the year.