Coinbase, the largest US cryptocurrency has acquired a service called Paradex on 23rd May, 2018. The San-Francisco-based company, Paradex allows users to trade cryptocoins directly with each other.
Announced on Wednesday that popular crypto exchange, Coinbase has purchased Ethereum startup Paradex. Since, there was a $225 million raise from Graylock Partners, Coinbase planned to use Paradex to provide news set of services.
Brian Armstrong, Coinbase co-founder and CEO sited the attainment as emphasizing,
“Coinbase’s commitment to investing in decentralized infrastructure and participating in the nascent world of wallet-to-wallet trading”.
However, the terms of the contract were not revealed. As it was further explained that paradex has 10 employees and they will continue to operate as a subsidiary of Coinbase. Since, they are considering a decentralized exchange as there no custody of tokens maintained on behalf of users. Thus, it allows them to trade via digital wallets.
Coinbase has not revealed the price for the deal instead explains Paradex as “a sophisticated and secure relay platform that will allow our customers to trade hundreds of tokens directly from their wallets”.
At present, Coinbase offers only BTC, BCH, ETH and LTC on its platform. The reason that firm is cautious about uncertainty regulatory. Thus, the digital tokens must be registered as securities. In other words, it doesn’t allow American customer available to Paradex instantly.
The company in a statement said,
“After making some product enhancements, we’ll initially offer this experience to customers outside the U.S., and eventually to U.S. customers after we implement changes”.
Earlier in the month of March, the US Securities and Exchange Commission that warned investors platforms offering crypto trading that must register with regulators.
More importantly, rebranding of institutional trading platform GDAX to Coinbase Pro, the newly acquired tech will enable Coinbase user to trade directly from one wallet to another. On Wednesday, the company also said that it is renovating its trading platform for professional investors of GDAX.
However, the new brand, Coinbase Pro will replace GDAX. It is featuring with new design and charts. Noticeably, GDAX will retire on 29th June and roll all customers over to Coinbase Pro.