Coinbase has acquired blockchain analytics startup Neutrino as part of a wider push to offer more diverse crypto assets across borders.
“This is particularly important as we work with regulators and agencies in different countries to bring new assets there,” Coinbase’s director of engineering and product, Varun Srinivasan, told CoinDesk. He added that Neutrino would help Coinbase identify “which new tokens are gaining value and gaining traction in the space.”
Neutrino’s eight employees will move into Coinbase’s London office this week, retaining their distinction as a separate entity in order to continue serving external clients. Srinivasan said this acquisition will help Coinbase research new assets while simultaneously ensuring the cryptocurrency exchange can identify undesirable activity, like theft, without handing over internal information to external companies. Financial terms of the deal were not disclosed.
The move comes just a few weeks after Israeli blockchain analytics firm Whitestream identified a Coinbase account that was funneling bitcoin donations to the Palestinian military-political group Hamas, which the U.S. government deems a terrorist organization. Coinbase declined to comment on this incident and Srinivasan said the Neutrino acquisition was already in the works for some time.
Broadly speaking about the benefits of owning an in-house analytics platform, Srinivasan said: “We are beefing up our abilities to do compliance and to work with regulators on issues across the space.”
Neutrino CEO Giancarlo Russo said in a statement that the acquisition was an “important milestone” for innovation in Italy, where it is based, adding:
“We decided to join Coinbase because we’re totally aligned with the company’s mission of building an open financial system and we share the same commitment to regulation,