Unbound Security, a cryptographic security startup based in Israel, has been bought by Coinbase Global Inc.
Coinbase obtains access to not just some of the world’s most advanced cryptographic security professionals, but also a foothold in Israel, a fast-rising technology powerhouse.
Expertise in cryptography
Guy Peer, co-founder of Unbound Security and current Vice President of Research and Development at Coinbase, will bring his more than 20 years of experience in cryptographic security to the company.
Meanwhile, Yehuda Lindell, a co-founder of Unbound Security, is a pioneer in the field of secure multi-party computation (MPC).
“Secure multi-party computation is an application of higher mathematics that allows crypto assets to be stored, exchanged, and deployed more securely, easily, and freely than ever before,” according to a release.
MPC, Coinbase said, combines the security of cold storage with the ease of a hot wallet.
Increasing global presence
Coinbase also stressed the value of establishing a presence in what it sees as a growing regional crypto hub.
Coinbase stated the Unbound Security team would form the heart of a new research center that it aims to build over time in Israel, citing “Israel as a hot hub of strong technological and cryptography talent.”
Coinbase’s current global talent acquisition plan, which has included the purchase of more than 13 startups this year and the establishment of talent hubs in India, Singapore, and Brazil, is the latest example.
Coinbase, for example, purchased India’s Agara in November to boost its client care.
Coinbase is diversifying its product offerings and revenue sources in order to ensure more sustainable growth, in addition to expanding geographically.
Since retail monthly transacting customers fell to 7.4 million from 8.8 million in the second quarter, and the exchange generates the majority of its money from retail trading fees, Coinbase said it wanted to focus more on customer support.
Coinbase closed the third quarter with $6.4 billion in cash and equivalents, which included roughly $2 billion in net proceeds from the September issuance of senior notes.
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