Coinbase, the largest cryptocurrency exchange in the United States, has acquired Liquifi, a platform specializing in token distribution, vesting management, and tax handling.
This move marks Coinbase’s fourth acquisition this year, expanding its capabilities beyond traditional crypto exchange functions. The company announced the deal on Wednesday, although it did not reveal the financial terms involved.
Liquifi has become an important tool for managing token ownership and distribution within the crypto industry. Its platform helps companies track cryptocurrency stakes, handle vesting schedules, and manage tax withholdings.
Some leading crypto organizations, including the Uniswap Foundation and OP Labs, rely on Liquifi’s services to organize complex token management tasks efficiently. The platform compares itself to Carta, a private equity-management tool that simplifies stake management in traditional finance.
Aklil Ibssa, head of corporate development at Coinbase, explained that token creation and cap table management are critical steps in a cryptocurrency’s life cycle.
He emphasized that simplifying these processes is necessary to onboard a billion people to blockchain technology. With this acquisition, Coinbase aims to move closer to offering an end-to-end platform for cryptocurrency projects, similar to competitors Binance and OKX, which operate “launchpads” to help new tokens enter the market.
Coinbase expands services with strategic 2024 acquisitions
This acquisition comes as a follow-through of Coinbase’s earlier 2024 acquisitions, including Spindl, a crypto ad firm, Iron Fish, a privacy-focused blockchain collective, and Deribit, a top crypto derivatives exchange acquired for $2.9 billion.
Such acquisitions are part of efforts by Coinbase to take its products beyond token listings so that it participates earlier in a cryptocurrency’s revenue generation and growth.
Though faced with persistent regulatory hurdles, Coinbase presses forward with growth. As a public U.S. company that is regulated by the SEC, Coinbase operates in a multifaceted environment in which many cryptocurrencies are deemed securities.
The takeover would have happened despite existing regulations, but the current government has enabled bolder measures. This acquisition shows that Coinbase prepares to lead the cryptocurrency market and adapt to evolving market and regulatory demands.
