A Dallas cryptocurrency-focused startup is being scooped up by leading U.S. mainstream cryptocurrency exchange Coinbase.
After three years, Zabo’s mission to build tools to bring cryptocurrency into mainstream financial services caught the attention of the well-known platform. Zabo lets users see all of their accounts in one place by connecting data to crypto wallets.
“Zabo unlocked something truly magical: making it incredibly simple and easy to connect cryptocurrency accounts and finally unify users’ complete financial picture,” wrote Zabo co-founders Christopher Brown and Alex Treece in a blog post.
The financial terms of the deal were not disclosed. Zabo had previously raised $3.5 million from investors.
The acquisition follows Coinbase’s direct listing on the Nasdaq on April 14, nearly a decade after it was founded in 2012. The company, which has more than 1,700 employees, has $335 billion in quarterly trade volume and $223 billion in assets on its platform.
Cryptocurrency saw a surge during the past year. By the end of the first quarter, Bitcoin had nearly doubled to $59,000 compared with where it ended 2020. Meanwhile, Ethereum more than doubled for the same period to $1,900.
Coinbase, which is available in over 100 countries, had over 56 million verified users at the end of the first quarter, a 65% increase from the same period last year, according to its latest quarterly report. That includes more than 8,000 institutions and over 134,000 ecosystem partners. In the same report, it mentioned a desire for more support and innovative products for its platform, which recently added seven new assets to trade, in order to keep up with the increasing competition.
Transaction revenue for Coinbase was $1.5 billion for the quarter, a jump from $172 million for the same quarter last year. Meanwhile, subscription and services revenue for the quarter was $56.4 million vs. $7.1 million in the same quarter for 2020.
Coinbase shares have dropped over 22% to $225.50 per share since its April IPO.