Coinbase Acquires Blockchain-Tracking Startup Neutrino for Undisclosed Price

Coinbase has acquired blockchain analytics startup Neutrino as part of a wider push to offer more diverse crypto assets across borders.

Srinivasan said this acquisition will help Coinbase research new assets while simultaneously ensuring the cryptocurrency exchange can identify undesirable activity, like theft, without handing over internal information to external companies.

The move comes just a few weeks after Israeli blockchain analytics firm Whitestream identified a Coinbase account that was funneling bitcoin donations to the Palestinian military-political group Hamas, which the U.S. government deems a terrorist organization.

Coinbase declined to comment on this incident and Srinivasan said the Neutrino acquisition was already in the works for some time.

"We decided to join Coinbase because we're totally aligned with the company's mission of building an open financial system and we share the same commitment to regulation, compliance and security in the cryptocurrency space."

Plus, Neutrino's European connections could help Coinbase gain a foothold in that region.

While Coinbase was busy acquiring Neutrino, Chainalysis raised a $30 million Series B and opened a new office in London, preparing to expand even further into the European market now that the European Union's Fifth Anti-Money Laundering Directive is expected to inspire new compliance requirements in several countries.

Coinbase has a significant amount of historical data that could help differentiate Neutrino from younger analytics startups.

Overall, Srinivasan said Coinbase is looking to become the "Google of crypto" with "Many different products" across the sector.

"If we see a really great team that's built a really great product, like Neutrino, for example, you'll see us go out and talk to them and try to bring them into the Coinbase family to extend the suite of products that we have," Srinivasan said.