Coinbase Acquires Paradex Exchange, Rebrands GDAX to Coinbase Pro
Coinbase acquires Paradex ERC20 Exchange, Look To Rebrand Its Crypto Exchange Service
Coinbase announced this Wednesday that they are acquiring Paradex, a crypto trading platform that leverages ERC-20 relay tokens to validate more expensive trading options in a decentralized fashion. The new platform will be into the Coinbase’s new professional trading product called Coinbase Pro.
They plan to make minor advancements to the technology and launch services to customers outside of the United States, enabling them to trade “hundreds of tokens,” it said.
Paradex allows investors to trade ERC-20 tokens directly from their digital token wallets, by acting as a relay for transfers. The new technology will significantly expand the types of cryptocurrencies that customers will be able to access through Coinbase, which has traditionally been more conservative than competitors in listing new types of coins.
The announcement comes via a tweet by Brian Armstrong, the CEO of Coinbase. He goes on to expand on the acquisition in a blog post on the company's website.
Paradex shared in the excitement and assured its current users that it will continue to build out its existing roadmap, while also exploring new opportunities as a Coinbase subsidiary. It was evident from these words in the blog post.
“One year ago this month, we set out to build the best-decentralized relayer that empowers users with self-custodianship. A year later, we’re not only extremely proud of what we’ve achieved, but intensely optimistic about where our space is headed and the explosion of opportunity growing each and every day. It was clear from our first conversations with Coinbase that the excitement and optimism were mutual. Like Coinbase, we believe wholeheartedly in the power of an open financial system; it’s paramount to what we’re working towards at Paradex. In our next steps together, we’ll continue to build out the existing Paradex roadmap and continue to explore the world of decentralization and the amazing opportunities at hand.”
An important outcome of Coinbase Pro is that the company is overhauling its trading platform for professional investors known as GDAX. Customers of GDAX will be rolled over to the revamped service called Coinbase Pro at the end of June. In his blog post, David Farmer, the General Manager of Coinbase Pro talked about the new paradigm just being an evolution of the old one.
“Coinbase Pro is an evolution of GDAX, specifically designed for individual crypto traders. When we launched GDAX three years ago, we envisioned a product that would help institutions enter the crypto space. It did this — and more. GDAX helped us discover the active crypto trader, and realize that this new type of customer requires a platform tailored to their needs.”
Even though Paradex allows users to trade ERC-20 coins in their wallets, it still remains uncertain if Coinbase will add direct purchase or trading support for such tokens.
Coinbase launched four new products last week: Coinbase Custody, Coinbase Markets, The Coinbase Institutional Coverage Group and Coinbase Prime to cater to the institutional investors. Institutional investors are a group that has been especially careful when entering the volatile cryptocurrency market.