San Francisco-based cryptocurrency exchange Coinbase has acquired Paradex, a peer-to-peer trading platform for ERC20 tokens, the companies announced on Wednesday.
Paradex is built on top of the 0x protocol, which allows for exchange settlement without the need for user accounts or taking custodianship of their funds.
The decentralized exchange solves the problems of trust and third-party reliance as Paradex users maintain absolute control of their tokens right up until the point where their trades are validated and finalized.
The Paradex platform was developed by a Malta-based startup and the company’s CEO Ron Bernstein has a two-decade experience of commodity futures markets.
More details will be coming out in the next few days, but financial terms of the deal are not expected to be disclosed.
It’s the sixth acquisition Coinbase has made to date and the third since poaching LinkedIn’s mergers and acquisitions boss Emilie Choi.
The Paradex app will be temporarily unavailable, starting today, as the company is integrating its services with Coinbase.
Interestingly, Coinbase’s blog post announcing the acquisition said it will eventually offer its US customers access to Paradex services but after deploying certain changes for compliance purposes.
Commenting on the news, Paradex’s statement states: “It was clear from our first conversations with Coinbase that the excitement and optimism was mutual. Like Coinbase, we believe wholeheartedly in the power of an open financial system; it’s paramount to what we’re working towards at Paradex. In our next steps together, we’ll continue to build out the existing Paradex roadmap and continue to explore the world of decentralization and the amazing opportunities at hand.”
(Photo: paradex)
