Paradex is a decentralized cryptocurrency trading relay platform and allows users to trade tokens directly from their wallets—specifically ERC-20 tokens. This makes it different from traditional exchanges in that the users fully control the process, having full custodial rights over the money.
The acquisition means that Coinbase will be allowing customers to trade more than the four coins it currently offers: Bitcoin, Ether, Bitcoin Cash, and Litecoin.
Coinbase is considered to be a centralized exchange, but according to the company, wants to move into decentralization—a goal the acquisition can help them realize. It will also help to open the exchange up to those outside of the United States.
Coinbase is currently working to overhaul its trading platform, currently known as GDAX. Once the overhaul is complete, it will be known as Coinbase Pro and will have Paradex platform integration. The upgraded version is expected to debut in the coming weeks with an international release, but will not be available to US customers until the company can ensure it complies with local and federal regulations.
As explained by Coinbase: “Initially, this experience is for our customers outside the U.S. but will be available to U.S. customers as soon as we obtain regulatory clearance, which we’re actively working toward.”
As for Paradex, the company is excited about the acquisition. A company statement published on its website reads:
“It was clear from our first conversations with Coinbase that the excitement and optimism was mutual. Like Coinbase, we believe wholeheartedly in the power of an open financial system; it’s paramount to what we’re working towards at Paradex. In our next steps together, we’ll continue to build out the existing Paradex roadmap and continue to explore the world of decentralization and the amazing opportunities at hand.”
While Paradex integrates with Coinbase, the app will be unavailable, but the companies expect the process to be quick.