Coinbase, also known as a cryptocurrency exchange, acquires Paradex to avoid regulatory hurdles and add coins to its portfolio. Paradex is a service that allows users to trade cryptocurrencies without the help of a reliable third party.
Launched in beta earlier in 2018, Paradex is also called a relayer made on top of the Ox platform. It provides users with an excellent solution to trade ERC20 tokens from their digital wallets. These tokens are a large ecosystem of cryptocurrencies built on top of the second best digital currency Ethereum.
Today, the company has become the topnotch cryptocurrency exchange in the U.S. Aside from the 20 million customer accounts; its crypto-assets are worth $20 billion. The exchange lists four cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Despite the demand from diverse customers, Coinbase is careful when adding new coins because of the regulatory pressure and requirements from the SEC. This is the agency responsible for seeing unregistered and unregulated securities.
According to Asiff Hirji, Coinbase CEO, the company considers Paradex, a “bulletin board.” They see it more than an exchange. They also believe that the acquisition is an acceptable addition to their portfolio.
Paradex will allow all users of the company to trade in a wide range of new cryptocurrencies. Hirji also added that they have to wait until launch to see how Coinbase incorporates Paradex’s product into their services.
Paradex will also be incorporated into Coinbase Pro. It is a rebrand of GDAX, a trading platform for all advanced users. It is very easy to use and specially tailored to reach the needs of many. But it still has a downside. It will only be available to international accounts. This means that users throughout the U.S. cannot use it. Fortunately, Coinbase has plans to provide the product to the users in America as soon as possible.
Aside from Paradex, Coinbase Pro will offer a customized, relevant, and responsive experience to its valuable clients. Along with that are improved charts and My Wallets to give users a closer look at their balances and orders as well.
Following the acquisition, Paradex will be temporarily unavailable. The company wrote on its site that it would continue to build out its current roadmap, explore decentralization and other opportunities. When it comes to the financial terms, they were not disclosed.
Coinbase’s announcement took place after the launch of its major products for institutional investors. Last month, it also announced to launch an index fund for virtual currencies.