Coinbase has bought a blockchain analytics project Neutrino striving to expand the range of cross border services that are offered to the users.
According to the Coinbase board, the acquisition will allow the company to analyse the market and identify new viable tokens in the crypto segment. The company wrote in its blog post that the blockchain intelligence plays an important role in "the crypto ecosystem and is necessary to achieve mission of bringing the open financial system to the world."
"By analyzing data on public blockchains, Neutrino will help us prevent theft of funds from peoples’ accounts, investigate ransomware attacks, and identify bad actors," the statement reads.
Some of Neutrino’s employees will reportedly move to the London office of Coinbase as a separate entity and will keep on serving outer clients. With the merger, Coinbase will expand its market opportunities once it becomes able to analyze new digital assets and track undesirable activity in a way that external companies will not get any internal data. With Neutrino, the exchange will manage to "bring more cryptocurrencies and features to more people while helping ensure compliance with local laws and regulations."
The contract cost is yet to be disclosed.
As the company stated in the statement, they believe that the technology offered by Neutrino will help to make cryptocurrencies "safer and more accessible" globally.
The CEO of Neutrino Giancarlo Russo believes that the purchase indicates a turning point for the industry in Italy, where the startup appeared. He added that the decision to join Coinbase was driven by the exchange’s aim to create an open financial system as well as its commitment to regulation, compliance and security in the area.
At the same time, Coinbase attributes its decision to the fact that Neutrino operates much faster compared to its competitors (Whitestream and Chainalysis). Besides, Neutrino’s location in Europe can allow Coinbase to boost its positions in this region. Nevertheless, Coinbase targets the US market as well as global expansion.