Cryptocurrency exchange Coinbase announced the acquisition of the Routefire platform to expand its services to institutional investors.
The Routefire platform, aimed at improving the trading infrastructure in the cryptocurrency market, was launched at the end of 2017. The developers of the project were engaged in the creation of products that automatically search for sources of liquidity with the most favorable rates and minimum commissions.
The amount of the deal has not been disclosed, but Routefire CEO Jason Victor said his team will develop a special set of tools and services for the exchange focused on large transactions with digital assets.
This will enable Coinbase to become one of the leading brokerage platforms for financial institutions with an interest in the cryptocurrency industry. The exchange also said that with the acquisition of Routefire, Coinbase plans to expand its brokerage services.
A few months ago, Coinbase’s price oracle for the DAI token crashed , resulting in the liquidation of $ 89 million in DeFi Compound. Therefore, Coinbase believes that the purchase of Routefire could restore some of the confidence of traders who had previously lost potential profits due to this situation and other failures on the exchange.
Coinbase previously reported that since April 2020, the volume of institutional investors’ cryptoassets on the exchange has increased to $ 20 billion in seven months. Therefore, the marketplace seeks to develop its services for institutions.
In addition, late last year, Coinbase filed an application with the US Securities and Exchange Commission (SEC) to conduct an initial public offering (IPO) in the US. Many traders and investors saw this move as a sign of the legalization of the cryptocurrency market.