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Coinbase will integrate data analytics from Skew to its platform to allow traders to track spot and derivatives markets in real-time.
Coinbase Global Inc (NASDAQ: COIN) stock was up over 1% on Friday to trade around $300 at the time of reporting. The spike was attributed to the announcement that the cryptocurrency exchange firm has acquired a leading data analytics and trade execution platform for institutional investors Skew.
According to Coinbase through a blog post, the latest acquisition will help it to provide real-time actionable data analytics to institutions and traders. The only publicly-traded cryptocurrency exchange company has acquired to not only diversify its investment but also help it remain competitive in the global digital asset industry.
“Through this acquisition, Coinbase reinforces our commitment to serving the growing institutional market. We know that access to high-quality data is essential for institutions assessing investments in crypto assets,” said Greg Tusar Vice President, Institutional Product.
However, the company did not disclose the financial terms during the announcement. Notably, Coinbase will integrate data analytics from Skew to its platform to allow traders to track spot and derivatives markets in real-time. According to the press release, the acquisition is expected to be finalized in the second quarter as it is subjected to customary closing conditions.
Bigger Picture on the Skew Acquisition by Coinbase
The acquisition was strategic in all aspects as the crypto firm has a high market valuation and is seeking to diversify to raise more revenue at the end of the first quarter as a public company.
According to the company, over 7,000 financial institutions use its digital asset platform. The firm offers cryptocurrency custodial services with top-notch security services. Through its regulated Coinbase Pro platform, the firm has attracted more institutional investors seeking to get cryptocurrency exposure. Moreso now that the cryptocurrency industry is under a bull market.
Coinbase prides itself on storing over $122 billion in digital assets for institutional investors. Mind you, the figure is more than half of what the firm accounts for all traders, approximately $223 billion.
Skew has established itself as a go-to platform for on-chain data analysis over the years. Notably, the firm was founded back in 2018 by Emmanuel Goh who currently acts as the CEO and Tim Noat which is the firm’s COO.
In a blog post, slew noted that it will significantly benefit from Coinbase’s huge market outreach. Furthermore, Coinbase has been its client since the firm launched SkewAnalytics. “Over the course of the last two years, we have not only developed a strong, positive relationship with the Coinbase team but have witnessed first-hand their impressive product-led culture, focus on compliance and commitment to the institutional space,” Skew noted in a blog post.