Cryptocurrency exchange Coinbase wishes to improve the safety of its users with the acquisition of cryptographic security company Unbound Security, the exchange said in a blog post on 30 November.
According to the announcement, the Israeli-based security company is an expert in a number of cryptographic security technologies, including the emerging field of secure multi-party computation (MPC). The acquisition of the company will not only provide Coinbase with access to cryptographic security experts, but also allow it to establish its presence in Israel. Coinbase wrote in the blog post:
“We’re always proud to welcome top talent to Coinbase and the Unbound Security team represents the very best expertise in its field. We look forward to working with them over time to move the entire state of cryptographic security forward and to continue delivering the highest levels of security to our customers.”
Coinbase will use Unbound Security’s expertise in the field of MPC — which allows multiple parties to evaluate a computation without revealing their private data — to improve the security of its platform. The technology is designed to combine the “virtually impenetrable” nature of cold storage with the “frictionless convenience” of a hot wallet.
Once the acquisition has been completed, Coinbase also plans to establish its presence in Israel through the creation of a “tech center of excellence” in the country, which will ensure it is always at the “bleeding edge of security and blockchain technology”. The exchange will use the Unbound Security team to form the core of the new research facility, which it plans to grow over time.