Coinbase Buys Unbound Security, Marking Its Presence in Israel

(Bloomberg) -- Coinbase Global Inc. said it acquired Israel’s Unbound Security, which developed ways to store and transfer crypto tokens more securely and easily.

Terms weren’t disclosed. Coinbase has acquired more than 13 companies this year. Earlier in November, the largest U.S. cryptocurrency exchange purchased India’s Agara, to improve its customer service. It also brought over the team from crypto wallet BRD. 

Coinbase is seeking to diversify its products and revenue to provide more sustainable growth, while also increasingly focusing on customer service and ease of use. In the third quarter, Coinbase’s retail monthly transacting users dropped to 7.4 million, from 8.8 million in the second quarter, as price volatility in cryptocurrency markets discouraged trading among smaller investors. Coinbase makes most of its money off of retail trading fees.

Coinbase ended the third quarter with $6.4 billion in cash and equivalents, including about $2 billion in net proceeds from issuing senior notes in September. The company previously said it planed to use some of the money for acquisitions.

The Unbound acquisition also establishes Coinbase’s presence in Israel, where the company plans to grow its technology research-and-development center “significantly over time,” according to a company blog.

©2021 Bloomberg L.P.