Recently, Coinbase announced the acquisition of Unbound, a cryptographic security firm. With this acquisition, one can say Coinbase has one of the most sophisticated security experts in its control. Outside that, it also means Coinbase has established its presence in Israel which is a technology hub that is growing rapidly.
The Expertise in Cryptographic
Talking about having the sophisticated security talents at hand, the vice president of Research and Development and co-founder of Unbound Security, Guy Peer will be serving Coinbase with its 20-year experience in cryptographic security. Alongside him is another co-founder of Unbound Security, Yehuda Lindell who is a pioneer in the growing field of secure MPC – Multi-party computation.
Per the announcement, the secure MPC is the application of advanced mathematics that allows the easy, flexible, and secure storage, transfer, and deployment of crypto assets more than ever before. Coinbase concluded that the MPC makes cold storage of crypto assets more impenetrable while setting up convenience for the usage of a hot wallet.
Setting Up a Global Presence
Coinbase creates emphasis on the importance of gaining ground in such a location perceived to be a hotspot for cryptocurrency. Speaking about Israel as a regional hub for cryptography talent and strong technology, Coinbase said the development team at Unbound Security will form the basis of its new research facility it has conceived a long time ago.
The acquisition of this Israel-based cryptographic security firm is the latest in the talent acquisition strategy of Coinbase globally. This year alone, Coinbase has acquired over thirteen companies and has taken the opportunities to set up talent bases in locations like Brazil, India, and Singapore. An example is the acquisition of the India-based Agara in November targeted at enhancing the customer service of Coinbase.
Adding to the plan of geographical expansion, Coinbase also seeks to diversify its sources of revenue and product offerings to establish more sustainable growth. Earlier this year, Coinbase announced that it will now be focusing its attention on customer service as a way to fix the average retail transaction on the platform that dropped from 8.8 million to 7.4 million in the second quarter of 2021.
This becomes a huge point of concern because the major source of revenue for Coinbase is in the fees charged on retail trading. The third quarter for Coinbase ended with $6.4 billion in cash and equivalents and it includes the $2 billion net proceeds from their issuing notes in September.