Today Coinbase announced it is acquiring Israeli startup Unbound Security. The company is known for its expertise in secure MultiParty Computation (MPC). When it comes to digital asset custody and keys, MPC is frequently used to split a key into fragments, making it safer to keep keys online rather than needing to use cold storage.
Coinbase didn’t disclose the acquisition price and said the company additionally provides it with a presence in Israel.
The acquisition comes a year after the company raised a $20 million Series B round of funding led by Evolution Equity Partners and included existing investors Goldman Sachs and Citi, amongst others. According to crunchbase, the company raised a total of $35 million.
This is the latest of numerous digital asset custody-related acquisitions, especially of Israeli companies. It started when PayPal bought Israeli custody firm Curv in March. Gemini acquired security tech firm ShardX, Galaxy Digital bought BitGo, and the most recent was crypto lender Celsius paying $115 million for Israeli custody firm GK8.
Meanwhile, several incumbents are getting into the sector with the launch of Zodia by Standard Chartered and Northern Trust, Nomura participating in the Komainu joint venture and the ING founded Pyctor solution in which several other banks are participating.