Leading U.S.-based cryptocurrency exchange, Coinbase is poised to step up its security as it announces the acquisitions of the Israeli crypto custody infrastructure firm, Unbound Security.
In an official blog post published by the crypto exchange on Tuesday, Coinbase noted that it intends to leverage the firm’s multiparty computation (MPC) technology to increase the security of its operations.
Unbound Security is considered to be a pioneer in MPC, which is a form of cryptography that combines the benefits of both cold and hot storage, allowing multiple parties on the blockchain to analyze a computation without revealing their private data.
“Crypto can’t grow without strong cryptography and strong security, but it also needs to be user friendly. Secure multi-party computation is an application of advanced mathematics to enable crypto assets to be stored, transferred, and deployed more securely, easily, and flexibly than ever before,” Coinbase noted.
The financial terms for the acquisition, however, have not been disclosed. Coinbase pointed out that the deal is still “subject to customary closing conditions”, adding that it expects to complete the acquisition in the coming months.
Once the deal is finalized, Coinbase will not only gain access to some of the industry’s most sophisticated cryptographic security experts, it will also establish its presence in Israel.
The crypto exchange added that it plans to establish a ” tech center of excellence” in the country and the Unbound Security team will form the core of this new research facility.
Coinbase Goes on an Acquisition Spree
Following Coinbase’s public listing on NASDAQ, the crypto exchange has acquired several companies this year.
It had acquired the artificial intelligence (AI)-powered customer support platform Agara, crypto data analytics firm Skew, and crypto data aggregator Zabo.
Just last week, crypto wallet provider, BRD, announced that it would be joining the Coinbase team.
Crypto-related Cyber Crimes Surges
This latest Coinbase acquisition comes at a time when the cryptocurrency industry has been besieged by a number of cyberattacks, as hackers continue to up their game.
Coinbase had fallen victim to one of such attacks earlier in August when thousands of its users had funds removed from their accounts due to a phishing campaign.
The exchange, however, stated that it would give out $100 worth of BTC each to users whose accounts had been compromised.