This is a proper acquisition, not an acqui-hire, according to the crypto account aggregator.
Coinbase, a Nasdaq-listed cryptocurrency exchange, has agreed to buy Zabo, a firm that allows financial institutions to provide their customers a bird’s-eye perspective of their crypto assets.
The deal was revealed in a blog post by Zabo, whose co-founders are based in the Dallas-Fort Worth area. The terms of the sale were not disclosed, except that it was a real acquisition, not an “acqui-hire,” implying that Coinbase is purchasing Zabo for its offerings, not just the personnel. According to Alex Treece, one of the co-founders, the deal should finalize in the coming weeks.
Christopher Brown, the other co-founder, said:
“We’ve been lucky to know multiple folks on the Coinbase team for years. We saw that there were amazing opportunities to work together, which led to us officially joining forces.”
He wouldn’t say anything about the companies’ future ambitions.
Zabo’s service is comparable to Plaid and Yodlee’s in the traditional financial services business; only it connects crypto wallets instead of bank or brokerage accounts.
Before and after coming public in April, Coinbase purchased committed to acquiring or started talks with many firms in the crypto field, including trade execution company Routefire, asset management Osprey Funds, prime brokerage Tagomi, and data supplier Skew.
CoinDesk’s parent business, Digital Currency Group, is a Zabo and Coinbase investor.