Coinbase has acquired Bison Trails, a blockchain infrastructure startup. Bison Trails offers an easy-to-use platform to launch nodes on any blockchain network. The firm announced the acquisition via a blog post. However, it did not reveal any information about the agreement’s financial terms. Initially, though, Bison Trails will function as a stand-alone company and offer its existing products. It comprises staking and node services to clients including exchanges, brokers, and custodians. Coinbase is amongst its significant clients.
Established in 2018, Bison Trails has created a substantial status in the blockchain industry. Last November, Bison Trails started its QT protocol enabling developers to develop on Facebook’s future Libra blockchain. The company also established a new technology that addresses terminating penalties connected with double signing messages. This is one of the most significant dangers of blockchain participation.
Coinbase on an expansion spree
The deal’s announcement arrives before Coinbase’s much-talked-about public markets debut. The firm listed a confidential S-1 for an IPO (initial public offering) in December however has not disclosed publicly on such a transaction. It’s unclear if the acquisition deal will conclude before an IPO. In any case, the market observers state that this could be the first of numerous acquisitions for Coinbase this year as an IPO provides companies with a more liquid currency for acquisitions.
The announcement arrives just weeks after Coinbase declared the acquisition of Routefire, an execution services startup. Coinbase claims of over 35 million verified users in 100 countries. The company has recorded cumulative trade volumes of over $320 billion. It provides additional validation that digital asset markets are here to stay. Bison Trails and the San Francisco-based cryptocurrency exchange are no outsiders. Coinbase Custody, the custodial service arm of the U.S. popular crypto exchange, has combined with the infrastructure firm to enable users to stake many tokens.
The expanded combination with Bison Trails came in the context of massive interest from crypto investors who were welcoming the concept of garnering interest in their crypto assets. The connection between the two companies was initially commenced in late 2019 when Coinbase Ventures invested in Bison Trails. At the time, Coinbase VC arm entered a $25.5 million Series A funding round for Bison Trails. Galaxy Digital, the crypto-focused merchant bank established by Mike Novogratz, was an initial backer after engaging in a $5.25 million seed round in March 2019.
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