Today, we are announcing the next phase of our security journey with the acquisition of Unbound Security. Based in Israel, he is a pioneer in a number of cryptographic security technologies, including the emerging field of Secure Multiparty Computing (MPC), a highly advanced technology for which Unbound Security co-founder Yehuda Lindell is. a world leader. With this acquisition, Coinbase not only has access to some of the world’s most sophisticated crypto security experts, including Unbound Security co-founder and current Vice President of Research and Development Guy Peer, who brings more 20 years of experience in crypto security, but also a presence in Israel, a well established and rapidly growing technology hub. This presence in Israel will add an additional powerful element to Coinbase’s global talent acquisition strategy, closely following recent surges in engineering talent bases such as India, Singapore and Brazil.

Crypto cannot thrive without strong cryptography and security, but it must also be user-friendly. Secure Multiparty Computing is an advanced math application that makes it safer, easier, and more flexible to store, transfer, and deploy crypto assets than ever before.

The crypto-economy is growing exponentially with a myriad of new use cases such as staking, DeFi, DAOs, and NFTs. Unfortunately, so do the threat vectors and the complexity for participants to securely manage their cryptographic private keys. Technologies like MPC will allow these revolutionary use cases to come to life in a safe, secure and user-friendly way. MPC will achieve this by protecting our clients’ assets with a technique that delivers the virtually impenetrable nature of cold offline storage, with the frictionless convenience of hot online wallets. Over time, MPC capabilities will enable new features of our consumer, institutional and cloud products to participate in the crypto-economy.

In addition to the technological expertise that we will gain through this acquisition, we also plan to establish a center of technological excellence in Israel that will ensure that Coinbase is always at the forefront of security and blockchain technology. We have long recognized Israel as a hotbed of strong tech and crypto talent, and we are excited to continue to grow our team with some of the best and brightest minds in these fields. The Unbound Security team will form the core of this new research facility, which we plan to develop over time.

We are always proud to welcome the best talent to Coinbase and the Unbound Security team represents the best expertise in its field. We look forward to working with them over time to advance the state of crypto security and continue to provide the highest levels of security to our customers. Please join us in welcoming the team to Coinbase.

This acquisition is subject to customary closing conditions and should be finalized in the coming months.