Crypto exchange operator Coinbase has agreed to acquire Zabo, a cryptographic data aggregator that allows fintech and financial services firms to connect with crypto exchanges, wallets and protocols.
Cryptocurrencies at all
Zabo announced the news on Wednesday, saying it will join Coinbase to further its mission to bring crypto mainstream. Zabo did not disclose the financial terms of the deal, but co-founder Alex Treece told The Block that it is an acquisition and not an acquisition, meaning Coinbase is buying Zabo for its offerings. not just for its staff.
Founded in 2018, Zabo provides APIs or software that allow financial applications to connect with users' cryptographic accounts. Zabo's offerings can be compared with Plaid, which allows applications to connect with users' traditional bank and brokerage accounts.
With Zabo, users can connect to any cryptocurrency exchange or wallet and keep track of their balances and transaction history. This, in turn, can help them with tax calculations and tracking their overall net worth.
An agreement in the pipeline
Treece said the Coinbase deal is expected to close by the end of this month. He declined to say whether Zabo's offerings will be transferred to Coinbase or whether Zabo will continue to operate independently. But he said Zabo's entire 10-person core team is moving to Coinbase.
So far Zabo has raised $ 3,5 million from investors, including Moonshots Capital, Blockchange Ventures and Digital Currency Group. Moonshots Capital co-founder and general partner Craig Cummings called the Coinbase deal a "great milestone" for Zabo and a "successful exit" for the venture capital firm.
There were no banking advisors for the deal, and among the legal advisors were Egan Nelson LLP from Zebo and Fenwick & West LLP from Coinbase, Treece said.
Coinbase, listed on Nasdaq (Nasdaq shares: COIN), has acquired several companies to date. These include the cryptocurrency trading firm Tagomi, the institutional business of the cryptocurrency custody provider Xapo, the blockchain analysis firm Neutrino, the infrastructure provider of staking of cryptocurrency Bison Trails, the crypto data provider Skew and the cryptocurrency trade execution platform Routefire.
And what do you think of this new acquisition? Will these steps serve to make cryptocurrencies increasingly mainstream? Let us know in the comments section below.