On Tuesday, Coinbase announced the acquisition of Unbound Security, a Tel Aviv-based company that uses a new type of cryptography to store digital assets.
The companies did not disclose the purchase price, but Unbound has raised $40 million since its inception in 2017, implying that Coinbase paid significantly more than that to acquire it.
The acquisition comes at a time when hackers continue to pose a significant threat to cryptocurrency companies, and after Coinbase revealed that over 6,000 of its customers were victims of an elaborate phishing scam involving SIM cards.
While Coinbase already invests heavily in security for its custody operations, the Unbound acquisition will provide the company with new technology in the form of secure multi-party computation (MPC), which claims to be both secure and user-friendly.
“MPC will deliver… by protecting our customers’ assets with a technique that combines the virtually impenetrable nature of cold, offline storage with the frictionless convenience of hot, online wallets,” Coinbase stated in a blog post announcing the acquisition.
The MPC technology will also be used across all of Coinbase’s services, including consumer and institutional ones, according to the post.
Coinbase announced the deal, which has yet to be finalized, as well as the establishment of a new research center in Israel that will focus on the intersection of blockchain and security, with members of Unbound forming the initial nucleus of the center.
The Unbound acquisition is the latest in a string of Coinbase acquisitions. These include the purchase of Agara, a machine-learning startup, earlier this month, as well as Skew, a data service, and Bison Trails, an infrastructure provider, earlier this year.