Texas continues to gain recognition as a leader in blockchain innovation and cryptocurrency mining. One of the many companies pushing those innovations in Texas caught the eye of a major player in the crypto industry.
Zabo, a Dallas-based data aggregator for the crypto industry, is to be acquired by the Nasdaq-listed cryptocurrency exchange Coinbase. Zabo allows fintech and financial services firms to connect to crypto exchanges, wallets, and protocols. To clarify, this is an acquisition and not an acquihire, meaning Coinbase is buying not only its staff but also Zabo’s offerings.
Founded in 2018, Zabo provides APIs (Application Programming Interface), software that enables financial applications to connect with users’ crypto accounts. Their mission is to build new tools to bring cryptocurrency into mainstream financial services, and with the acquisition by Coinbase, they are better positioned to do just that.
Zabo is comparable to Plaid, allowing applications to connect with users’ traditional bank and brokerage accounts. Zabo helps users with tax calculations and monitoring their overall net worth in one single user flow. It has not yet been disclosed whether Zabo will be rolled into Coinbase or if it will continue to operate independently.
In a blog post announcing the acquisition, Co-Founders Christopher Brown and Alex Treece shared their excitement about the upcoming deal:
“Zabo unlocked something truly magical: making it incredibly simple and easy to connect cryptocurrency accounts and finally unify users' complete financial picture. We are very excited to join Coinbase, which has done more than perhaps any other company in advancing the mission of bringing cryptocurrency mainstream… While there has been incredible progress made by cryptocurrency and web 3.0 technology in the last decade, it is still early! We look forward to working as part of Coinbase to continue to bring cryptocurrency mainstream and increase economic freedom for billions of people.”
With the current state of affairs, alternatives to the traditional finance system are becoming more and more appealing for those conscientious of wealth creation and furthermore, wealth preservation. Zabo’s offerings have allowed them a place at the table in the development of the foundations of this financial future.
This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.