• Zabo, a cryptocurrency data aggregator, has been acquired by Coinbase

  • According to a blog post published on Wednesday, Coinbase is acquiring Zabo, a cryptocurrency data aggregator.

    Zabo was founded in 2018 with the goal of developing new tools to bring cryptocurrency into mainstream financial services, according to co-founders Christopher Brown and Alex Treece in a blog post.

    Over the last three years, the company has built the Zabo API, a single application programming interface that connects users to any cryptocurrency exchange platform, wallet, protocol, or account.

    “The cryptocurrency industry is still in its early stages, and many fundamental technologies must be developed in order for the stack to work for mainstream participants. “Ultimately, the technology must be safe and usable even as we witness more groundbreaking innovation in the cryptocurrency space,” Brown wrote in an email to Blockworks. “We believe that this acquisition will aid in the development of key technologies.”

    Zabo would not reveal the value of the transaction or how it will be integrated into Coinbase’s platform. Brown, on the other hand, stated that the acquisition will take place “as soon as possible,” and that the two companies are nearing the end of the process.

    Coinbase’s mission of “increasing economic freedom around the world” is “bold and important,” according to Brown. “Once we realized there was a mutual benefit to be had with our team and technology,” he continued, “it became an easy decision for us.”

    Zabo announced a $2.5 million seed round in March 2020, led by Moonshots Capital, with participation from Blockchange Ventures, Castle Island Ventures, Digital Currency Group, CoinShares, Tezos Foundation, Capital Factory, and others.

    Coinbase has launched crypto savings high-yield USDC accounts, a prime brokerage service, and expanded into borrowing bitcoin as collateral in the last few months, among other developments.

    According to Brian Foster, a member of Coinbase’s Institutional Sales, Trading, and Prime Services team and Coinbase Ventures, in the company’s H1 2021 Review report, the first half of 2021 was one of the most active periods on record for crypto. According to Foster, the first six months saw new all-time highs in asset prices, user adoption, and trader activity.

    Coinbase’s net revenue in the first quarter of 2021 was $1.597 billion, up 792 percent from $179 million in the previous quarter. During the first quarter, Coinbase also acquired Bison Trail, which will enable businesses to send and store cryptocurrency, accept cryptocurrency payments, and build their businesses with crypto-native infrastructure, according to a shareholder letter.

    The company stated at the time that the rapid expansion of the crypto economy creates new challenges because competition among the marketplace is increasing as new groups join the space every month. While Coinbase has stated that it welcomes these challenges, it has also stated that it must continue to move quickly to address them through action and growth.

    Coinbase is set to report its second-quarter earnings on August 10th, with an expected EPS of 2.57 and revenue of $1.83 billion.

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