Coinbase has acquired digital identity startup Distributed Systems, as the cryptocurrency trading platform takes another step deeper into digital identity protection. The acqui-hire of the San Francisco-based company (fka Pavlov) will help Coinbase develop a decentralized identity login protocol meant to work a bit like accessing a third-party website using one’s Facebook account.
The deal is the latest in an impressive acquisition streak this year for Coinbase. In March, cryptocurrency’s first unicorn hired Emilie Choi as VP of corporate and business development, with a promise of more M&A activity in the future. The move followed Choi’s eight-year tenure as VP and head of corporate development at LinkedIn—a period that coincided with its $26.2 billion acquisition by Microsoft in 2016.
For fans of all things M&A, Choi has hardly disappointed in her new role, and Coinbase has worked to deliver on its pledge to boost its dealmaking. The company has completed eight acquisitions since its founding in 2012, per the PitchBook Platform, but just two came before 2018. Last quarter alone, Coinbase put a bow on five of those deals, as it works to take more significant steps toward diversifying its platform beyond the buying and selling of bitcoin, as the cryptocurrency’s value has plunged from the dizzying heights achieved late last year.