Coinbase – one of the world’s largest and most popular cryptocurrency exchanges – has acquired a Dallas, Texas-based crypto startup known as Zabo.
Coinbase Gets Its Hands On Zabo
Zabo is a relatively new firm, with its seed funding round occurring just last year in 2020. At that time, the company managed to raise more than $2.5 million thanks to the leadership of financial enterprises like Austin’s Moonshots Capital. It was one of the firm’s first blockchain-based investments.
In a recent interview, Alex Treece – the co-founder of Zabo – expressed his enthusiasm that a company as large and as prominent as Coinbase would have such an interest in his enterprise. He said:
It’s a huge milestone for us as a team and validation of what we’ve been working on for the past few years.
Right now, the company will not be required to relocate to San Francisco, CA, which is where Coinbase is currently headquartered. The main offices for Zabo will remain in the Dallas-Fort Worth area. At the time of writing, few details regarding the financials of the acquisition have been disclosed, with Treece refusing to comment on how much the company was sold for. It is also unclear if Zabo will be acting as an independent firm or as a specific (and new) division of Coinbase.
For the past few years, Zabo and Coinbase have shared a special relationship, with many of the companies’ leaders working together in different capacities. Treece says that both his business and the trading platform share similar goals, which ultimately made the acquisition the right move to make. He has also suggested that with Coinbase’s support, Zabo will examine making the technology behind cryptocurrency more mainstream, so it can apply to additional industries in the coming future.
Craig Cummings – the co-founder and general partner at Moonshots, which led the seed funding round for Zabo last year – explained in a statement:
Even with incredible growth, the crypto market was fragmented. Fintech and traditional financial institutions were spending massive engineering resources to build from the ground up, and consumer exchange accounts, wallets and protocols were disconnected. That’s where Zabo came in.
Zabo is the 15th company to be acquired by Coinbase. Other firms to join the ranks of the digital currency exchange include software startup Blockspring, blockchain analyzing firm Neutrino, and London-based financial company Skew.
Further Growth… With a Few Bumps Along the Way
In the meantime, Treece believes that the crypto space is only going to continue its present growth patterns, though he believes volatility will continue for now. He mentioned:
It is still early, and crypto is still young as an industry. You don’t create a new, trillion-dollar asset class from nothing without volatility. This space is about a lot more than just asset prices. It’s also about building next-generation financial infrastructure. We believe crypto will positively impact billions of people’s lives.