While providing trading in only four big-time cryptos (Bitcoin, Ethereum, Litecoin and Bitcoin Cash) San Francisco-based exchange Coinbase has been steadily growing in popularity since the opening. And now they plan to expand their operations by acquisition of Paradex, a decentralized smart contact-powered trading platform.
The news about the deal were released on May 24, 2018, though no financial details were disclosed as of yet.
Though Paradex is a small company with only ten employees as of now, Coinbase's acquisition of Paradex will provide their customers with ability to trade hundreds of cryptocurrencies straight from their wallets. Its a significant step for the company, because while US Securities Exchange Commission considers various ICO coins to be equal to securities and so exchanges have to be registered with regulators. Paradex gives Coinbase a chance to abstain from such regulations, because the exchange itself wouldn't be a trader, only a platform for the smart contracts to be stored and deployed from. So the exchange doesn't have to fear crossing SEC in case some of the listed coins are later judged to be commodities.
Over 13 million users will get access to the new functionality in the near future, with release outside of the US once the some technological improvements and integration into the larger platform is complete. And domestic market would see the new features once the appropriate “changes for compliance purposes” are finished.