Coinbase Acquires Paradex
Popular cryptocurrency exchange Coinbase will enable the trade of “hundreds of coins” by using its newest acquisition, Paradex, a blockchain-based platform that allows users to trade digital assets via smart contracts which are stored on the blockchain.
Paradex Enabling the Trade of Hundreds of Coins
On Wednesday, May 24, Coinbase announced the acquisition, but no financial details were released. A representative defined Paradex as “a sophisticated and secure relay platform that will allow our customers to trade hundreds of tokens directly from their wallets.”
The addition of Paradex, which has only ten employees, will significantly increase the number of cryptocurrencies available on Coinbase to its 13 million users. Until now the exchange only listed four coins: Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
Coinbase plans on launching Paradex’s services to its clients outside of the US once it finalizes some technological implementations and will ultimately release it to its home customer base once it is done with “changes for compliance purposes” that are required by US regulators.
American cryptocurrency exchanges are plagued by ambiguity as the Securities Exchange Commission has cautioned that trading coins considered securities need the exchanges to be registered.
The unsettled clarity matter has made exchanges in the US proceed with extreme caution when it comes to listing coins from ICOs fearing they will be later considered to be commodities by the SEC.
Paradex may be able to bypass this as it only supports smart contract trading and has no claim over the coins which are traded on its platform. This may enable Coinbase users to have somewhat of a safe access to “hundreds of Coins” without putting at risk the exchange of displeasing the SEC.
Coinbase Overhauling GDAX
Coinbase also made an announcement last week that it would start upgrading its trading technology, along with creating new services designed to cater to institutional money from hedge funds and trading firms.
After its Wednesday announcement, the exchange also said it would also give its professional investor GDAX platform a makeover. Current GDAX clients will automatically receive access to the new Coinbase Pro service in June, said a Coinbase spokesperson.