Coinbase has obtained blockchain infrastructure startup, Bison Trails, which provides an easy-to-use platform to launch and run nodes on any blockchain network. The acquisition was announced via a blog post on Monday, but no information on the financial terms of the agreement was published.
“By joining forces, we aim to bring the advanced technology that the Bison Trails team has developed — and continues to develop — to more projects and more companies around the world,” Coinbase said in a statement.
According to the acquisition terms, the startup will continue to operate as a standalone product and provide its “infrastructure as a service” to its current customers.
Bison Trails enables holders of digital tokens to run their own validators or simply custody their holdings offline and delegate the stake to another company’s validator. This enables users to earn dividends or interest on Celo holdings just for depositing and holding the token without leaving their custodian interface.
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Bison Trails and the San Francisco-based cryptocurrency exchange are no strangers as Coinbase Custody, the custodial service arm of the US popular crypto exchange, has integrated with the infrastructure firm to allow users to stake many tokens.
The expanded integration with Bison Trails came in the context of huge interest from crypto investors who were open to the idea of earning interest on their crypto assets.
The relationship between the two companies has originally started in in late 2019 when Coinbase Ventures invested in Bison Trails. The Brooklyn-based platform allows for other companies to engage in blockchain networks without having to develop any of the technology necessary to engage in these chains themselves.
Bison Trails’ acquisition is Coinbase’s second purchase of 2021, and comes barely two weeks after it acquired crypto trade execution startup, Routefire.