U.S.-based digital asset platform Coinbase has acquired blockchain intelligence startup Neutrino. The company made the news known earlier today, February 19, 2019, but the cost of the acquisition was not disclosed.
The announcement reads:
“Neutrino’s technology is the best we’ve encountered in this space, and it will play an important role in legitimizing crypto, making it safer and more accessible for people all over the world.”
The blockchain startup will analyze data on public blockchains and help prevent theft of funds on Coinbase, investigate ransomware attacks when they come up and identify the culprits using its suite of tools.
Neutrino offers similar services to New York-based Chainalysis, designing and developing tools for monitoring data on the blockchain. Per its website, Neutrino creates custom solutions for “monitoring, analyzing and tracking cryptocurrency flows across multiple blockchains, providing actionable insight on the whole cryptocurrency ecosystem.”
With its analytical capabilities, Neutrino will help Coinbase add new features and tokens to the platform, while ensuring “compliance with local laws and regulations.”
Beyond analytics, Neutrino claims to have some firepower under its sleeves. The startup has a solution specifically developed for law enforcement agencies dubbed the XFlow nSpect, which allows for total tracking of cryptocurrency movements across multiple blockchains. Per details on its website, Neutrino claims the XFlow can be used to track stolen funds, monitoring their flow from one exchange to another, mixers and other services in real time.
Coinbase says Neutrino will not go through any rebranding efforts. Instead it will continue to operate as an independent entity out of Coinbase's London office. The exchange sees the acquisition as a step in the right direction for creating an “open financial system.”
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.