Coinbase acquires trading platform Paradex, Launches new platform Coinbase Pro.

Top U.S. cryptocurrency exchange Coinbase announced it would acquire trading platform Paradex that lets customers trade all sorts of digital tokens on a so-called decentralized exchange.

Decentralized exchanges rely on smart contracts to let users trade tokens without a centralized authority (such as Coinbase or the NASDAQ) and record the transactions on a blockchain.

Although the price of the deal was not disclosed, Coinbase described Paradex as

A relay platform that will allow our customers to trade hundreds of tokens directly from their wallets

A key distinction between Paradex and other exchanges is that it does not hold tokens on behalf of its customers. Users instead trade peer-to-peer, directly from their own “wallets.” Coinbase, in contrast, acts as a trusted custodian for digital assets on its exchange

Paradex’s platform offers hundreds of digital tokens for trading, while Coinbase notoriously only offers four. Initially, only customers outside of the U.S. will have access to the new exchange but Coinbase said it’s “actively working toward” regulatory clearance for the product in the U.S.

In addition to this, on Wednesday, May 23, the company also announced the launch of its new platform called Coinbase Pro, as a part of rebranding and replacement of its GDAX exchange. The company said that this new platform has been launched to gives users a more intuitive and easy trading experience and is very suitable for the need of individual traders.

The company said that GDAX and Coinable Pro will be working together until the 29th of June, 2018. After this, “all customers will be seamlessly rolled over” to the new platform.

Coinbase also said that it will integrate the newly acquired Paradex relay platform to the newly launched Coinbase Pro. The Paradex technology will them allow its customers to trade hundreds of digital tokens directly to their wallets without the exchange coming in the middle.

Coinbase currently allows its customers to trade in only four different digital currencies – Bitcoin, Ethereum, Litecoin and Bitcoin Cash. As a part of this integration, the Coinbase customers will get access to multiple different digital currencies. However, the company says that the Paradex service will be first available to customers outside the U.S.

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