Coinbase Acquires Crypto Data Aggregator Zabo
Zabo began in 2018 with a mission to build new tools to bring cryptocurrency into mainstream financial services
- Over the last three years, the startup established the Zabo API to connect users to any crypto exchange platform, wallet, protocol or account
- Coinbase is scheduled to announce its Q2 earnings on August 10 with an expected earnings per share of 2.57 and an expected revenue of $1.83 billion
Coinbase is acquiring a cryptocurrency data aggregator, Zabo, according to a blog post announcement on Wednesday.
Zabo began in 2018 with a mission to build new tools to bring cryptocurrency into mainstream financial services, co-founders Christopher Brown and Alex Treece wrote in the blog.
Over the last three years, the startup established the Zabo API, which is a single application programming interface that connects users to any crypto exchange platform, wallet, protocol or account.
“The cryptocurrency industry is still early, and there are many fundamental technologies which need to be built to make the stack work for mainstream participants. Ultimately the technology needs to be safe and usable even as we see more groundbreaking innovation within the cryptocurrency space,” Brown said in an email to Blockworks. “We think this acquisition will help drive the development of key technologies.”
Zabo could not share the value of the deal or what the integration into Coinbase’s platform will look like. However, Brown said that the acquisition will take place “as soon as possible,” and the two companies are in the final stages of the process.
Coinbase’s mission “of increasing economic freedom in the world is bold and important,” Brown said. “Once we understood there is mutual benefit to be had with our team and technology, then it became an easy decision for us,” he added.
In March 2020, Zabo announced a $2.5 million seed raise led by Moonshots Capital and was joined by Blockchange Ventures, Castle Island Ventures, Digital Currency Group, CoinShares, Tezos Foundation, Capital Factory and others.
The first half of 2021 was one of the most active periods on record for crypto, said Brian Foster, a member of Coinbase’s Institutional Sales, Trading, and Prime Services team and Coinbase Ventures, in the company’s H1 2021 Review report. The first six months brought in new all-time highs in asset prices, user adoption and trader activity, Foster said.
In Q1 2021, Coinbase had a net revenue of $1.597 billion, up 792% from $179 million in the year-ago quarter. During Q1, Coinbase also acquired Bison Trail, which will allow companies to send and store crypto, accept crypto payments and build their businesses with crypto-native infrastructure, it said in a shareholder letter.
At the time, the company said that the rapid expansion of the crypto economy creates new challenges as competition is increasing among the marketplace as new groups join the space every month. While Coinbase said they welcome these challenges, they said they have to continue to move quickly to address them through action and growth.
Coinbase is scheduled to announce its Q2 earnings on August 10 with an expected earnings per share of 2.57 and an expected revenue of $1.83 billion.