Coinbase Acquires Utopia Labs, Aims to Speed Up On-Chain Payments

Going forward, the Utopia Labs team will integrate with the Base team.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 14 November 2024 18:12 IST

Coinbase Acquires Utopia Labs, Aims to Speed Up On-Chain Payments

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Coinbase has been exploring ways to integrate AI with crypto

Highlights

Coinbase has its own layer-2 scaling solution called Base
Coinbase is focused on enhancing its stablecoin-related services
Utopia was founded in 2021 in San Francisco, US

Coinbase is actively seeking to enhance its suite of services. This week, the crypto exchange completed its acquisition of Utopia Labs, a San Francisco-based blockchain fintech firm. The acquisition aims to refine Coinbase's on-chain payment systems and services, although financial details have not been disclosed. Coinbase's valuation was approximately $59.49 billion (roughly Rs. 5,02,159 crore) in March, dropping to $36.26 billion (roughly Rs. 3,06,073 crore) by September.

Moving forward, the Utopia Labs team will join forces with the team behind Base – which is Coinbase's own layer-2 scaling network, the exchange said in an official blog post. The exchange is expected to enhance recordkeeping for smart contracts, transactions, and tokenization activities directly on the blockchain.

“Base is supporting developers who build onchain apps, those apps attract users on-chain, Wallet onboards those users, and in turn more users incentivise more developers to build on-chain. In pursuit of this, I'm excited to share that the Utopia Labs team is joining Base to help accelerate our on-chain payments roadmap within Coinbase Wallet,” said Jesse Pollak, creator of the layer-2 blockchain Base.

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In the coming months, Coinbase will attempt to bring low-cost, fast, and global payments to its users. The focus will also be on strengthening its stablecoin services—cryptocurrencies that are backed by reserve assets like fiat currencies or gold.

“Stablecoins amounted to $8.5 trillion (roughly Rs. 7,17,48,727 crore) in transaction volume across 1.1 billion transactions Q2 2024, and continuing to improve the user experience will be crucial as stablecoin payments continue to grow,” Pollak added.

Founded in 2021, Utopia Labs claims to have developed several solutions to enable low-cost transactions for Web3 projects. The platform shared the official announcement of its acquisition by Coinbase with its follower base of over 16,000 on X.

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Since 2021, we've launched a suite of products designed to make onchain payments more accessible and efficient for both individuals and businesses.

Today, we're thrilled to announce that our team is joining @coinbase to accelerate this vision - a world where we're able to bring… pic.twitter.com/sMyUAyFMZy
— Utopia Labs (@utopialabs_) November 13, 2024

For Coinbase, this acquisition follows its recent demonstration of what it called the world's first AI-to-AI crypto transaction. In September, CEO Brian Armstrong showcased an AI entity purchasing tokens from another AI entity, highlighting the potential of AI integration within Web3.

In July, OpenAI's Chris Lehane joined Coinbase's board of directors as one of three new appointees.

Recently, the exchange introduced its Pre-launch Market initiative to support upcoming crypto projects by serving as a launchpad. Coinbase has also been actively challenging the US SEC, seeking clear guidelines on compliant business practices and areas requiring caution.

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Further reading: Cryptocurrency, Coinbase, US, Utopia Labs, Stablecoins

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More