Coinbase, the U.S.-based cryptocurrency exchange, has made another strategic acquisition — this time in the critical field of blockchain infrastructure.
The company announced Tuesday that it had acquired Bison Trails, a fully managed blockchain infrastructure provider, in a deal that provides a “foundational element” within its growing ecosystem of products.
“By joining forces, we aim to bring the advanced technology that the Bison Trails team has developed — and continues to develop — to more projects and more companies around the world.”
Bison Trails will continue to operate as a standalone product, Coinbase said.
Founded in 2018, Bison Trails has carved out a strong reputation in the blockchain industry. Last November, Bison Trails launched its QT protocol allowing developers to build on the forthcoming Diem blockchain, a protocol that was initially proposed by Facebook. The company also pioneered new technology that addresses so-called slashing penalties associated with double signing messages, which is considered one of the biggest risks of blockchain participation.
Joe Lallouz, Bison Trails' CEO, tells Cointelegraph that he and co-founder Aaron Henshaw officially unveiled their company to the world in Mar 2019. At the time, Bison Trails was marketed as the first "infrastructure as a service company designed for next-generation blockchain networks.”
"It’s remarkable to look back at that announcement post and recognize how little of our approach changed in the time since, despite the rapid growth and evolution of the ecosystem," he said.
"We are incredibly excited to join Coinbase as a standalone product line in the Coinbase portfolio, an anchor of Coinbase’s third pillar of crypto services for developer tools and ecosystem advancement."
As for Coinbase, the leading crypto exchange has been consolidating its already strong industry position ahead of an expected initial public offering later this year. As Cointelegraph reported earlier this month, Coinbase recently acquired the Routefire platform — a move that could significantly boost trade execution and help protect against severe outages during periods of volatility.
Coinbase boasts of more than 35 million verified users in over 100 countries. The company has reported cumulative trade volumes in excess of $320 billion, offering further validation that digital asset markets are here to stay.