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Coinbase Global Inc. has acquired the crypto investment platform Echo in a cash and stock transaction valued at approximately $375 million. On Tuesday, the company announced the transaction, stating that it will integrate Echo's fundraising tools into its existing crypto ecosystem.
The acquisition will boost Coinbase’s strategy to expand its products and improve its presence in digital finance. The exchange aims to simplify the process of users engaging in both private and public token sales through the deal.
Cryptocurrency deal activity has increased over the past several months, with companies reacting to a more welcoming policy environment in the United States. The purchase is part of an industry-wide trend of expansion and consolidation in the digital asset sector, as large exchanges seek new avenues of growth.
Echo has a platform that simplifies fundraising and investing in crypto assets. Its Sonar platform helps blockchain projects to fund themselves via structured token sales. The platform has raised over $200 million in capital for cryptocurrency ventures since its launch, within the past two years.
Trader Jordan Fish, better known as Cobie, is the founder of Echo. The company's technology focuses on making digital fundraising more transparent and efficient. Coinbase has announced that it will enhance the functionality of Echo and develop a broader financial application, including tokenized securities and real-world assets.
Coinbase anticipates building simpler access to digital capital markets through the assimilation of the services of Coinbase. The relocation will also enhance its retail and institutional user infrastructure, enabling the company to expand beyond conventional crypto trading into other blockchain financial sectors.
The Echo takeover is after a revival period in the digital asset industry. The Kraken acquired the Small Exchange futures exchange for $100 million last week, to support an American-based derivatives service.
Coinbase also acquired a derivatives platform, Deribit, in the first half of the year, valued at $ 2.9 billion, which has expanded its derivatives and global business. Coinbase is seeking to establish a strong presence in key areas of the cryptocurrency market, as evidenced by its acquisition of Echo.
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