Coinbase, the major cryptocurrency exchange, has acquired the Routefire platform for enhanced trade execution.
It has been reported that Jason Victor, the CEO of Routefire, announced that the team would now be developing its execution services for Coinbase while thanking users for their support over the last three years.
However, Routefire started in late 2017 with a mission to enhance trading infrastructure in the crypto market. They developed products that allow traders to automatically search multiple sources of liquidity to find the most favorable rates on both prices and fees.
The report said that after the move, the Routefire team will be developing the Coinbase Prime suite of tools and services. This is aimed at being the premier brokerage platform for financial institutions that wish to trade in the cryptocurrency space.
Can a new acquisition help Coinbase scale? The company recently acquired the infrastructure platform Routefire to bring some much-needed relief as Coinbase expands its institutional crypto services. https://t.co/SUZrviWvCV — Cointelegraph (@Cointelegraph) January 8, 2021
It has been analyzed that Coinbase has suffered multiple outages over the past 12 months, often coinciding with volatile trading days for Bitcoin by angering traders who lost out on potential profits. The acquisition of Routefire and its trade execution expertise could go some way to restoring confidence in this regard.
Coinbase, at the end of last year, filed a registration for an initial public offering with the United States Securities and Exchange Commission.
Thus, the move was seen by many to be a further sign of the growing legitimacy of the cryptocurrency market.
Source: Cointelegraph