U.S. largest cryptocurrency has acquired Ethereum startup Paradex, a startup with around nine employees in New York, Chicago and San Francisco that enables peer-to-peer trading of ERC20 tokens that are issued on the Ethereum blockchain. Coinbase announced on Wednesday.
Neither Coinbase nor Paradex, disclosed the terms of the deal but Coinbase co-founder and CEO, Brian Armstrong termed the purchase as reinforcing. “Coinbase’s commitment to investing in decentralized infrastructure and participating in the nascent world of wallet-to-wallet trading.” Brian Said.
Coinbase plans to use Paradex to allow non-U.S. users the option to trade hundreds of Ethereum-based digital coins directly with one another.
Coinbase also announced yesterday that it’s rebranding GDAX, it’s trading platform that was initially designed for institutional investors. GDAX will be renamed “Coinbase Pro” at the end of next month. Coinbase Pro will be an evolution of GDAX, explicitly designed for individual crypto traders.
Coinbase Pro will feature a simple user interface, a new method for depositing and withdrawing funds, a consolidated portfolio designed to give customers an overview of all their wallets, chart features, and a vast range of historical data. Coinbase will lay off GDAX at the end of June and roll all GDAX users over to Coinbase Pro.
A vital difference between Paradex and other traditional Centralized crypto exchanges is that it does not hold tokens on behalf of its Users. Customers instead trade peer-to-peer, directly from their own “wallets.” Paradex accomplishes by using a blockchain protocol developed by 0x, which is in turn advised by Coinbase co-founder Fred Ehrsam and former Coinbase employees Olaf Carlson-Wee and Linda Xie.
Both GDAX and Coinbase Pro will operate concurrently until June 29 when Coinbase will retire GDAX. Coinbase Pro users will have access to the single pool of liquidity shared by all Coinbase products.