The exchange platform hopes the purchase will assist in achieving its own goals
Coinbase, the crypto currency exchange platform, has purchased BREAD, the crypto wallet firm for an undisclosed amount.
It comes as NYSE listed Coinbase is pushing to add diversification to a business that has been tightly tied to the ebb and flow of cryptocurrency volatility.
Earlier this month the crypto exchange operator’s third quarter revenues fell short of expectations, driven by the underlying trading trends in cypto volumes.
Buying BREAD is among a number of efforts, which are also set to see the group move into non-fungible tokens (NFTs) with a new marketplace “coming soon”. Separately, plans to expand into other financial services, based on crypto, have seen friction with regulators.
BREAD was launched in 2014, Its focus is on decentralisation, security, and customer-controlled funds, Coinbase noted. The platform boasts over 8mln customers, across 170+ locations globally.
Coinbase, on Twitter, said the team at BREAD will bring “deep expertise in self-custody for crypto-wallets,” which it expects will allow for a greater number of people to access their crypto wallets safely and securely.
Notably, most Coinbase users presently hold their crypto assets under the company’s custody rather than their own designated digital wallets.
Speaking to CoinDesk, a spokesperson for Coinbase said to expect more news regarding this deal in the coming months.
BREAD released in its own statement that as things stand, nothing will change and users with the wallet can continue to transact as normal. It also confirmed that its team will continue its own mission of bringing the power of decentralisation to more users with Coinbase.
Since the purchase was announced late last night, BREAD’s crypto token has rocketed about 500%, from US$0.16 to about US$0.96.