Coinbase wants to be Facebook Connect for crypto. The blockchain giant plans to develop ‘Login with Coinbase’ or a similar identity platform for decentralized app developers to make it much easier for users to sign up and connect their crypto wallets.
To fuel that platform, today Coinbase announced it has acquired Distributed Systems, a startup founded in 2015 that was building identity standard for dApps called the Clear Protocol. Distributed Systems had raised a $1.7 million seed round last year led by Floodgate and was considering raising a $4 million to $8 million round this summer.
But Srinivasan says “No one really understood what we’re building”, and it wanted a partner with KYC data. It began talking to Coinbase Ventures about an investment, but after they saw Distributed Systems’ progress and vision, “they quickly tried to move to find a way to acquire us.” Distributed Systems began to hold acquisition talks with multiple major players in the blockchain space, and the CEO tells me it was deciding between going to “Facebook, or Robinhood, or Binance, or Coinbase”, having been in formal talks with at least one of the first three.
Coinbase “were able to convince us they were making big bets, weaving identity across their products.” The financial terms of the deal weren’t disclosed. Coinbase’s plan to roll out the ‘Login with Coinbase’-style platform is an SDK that others apps could integrate, though that won’t necessarily be the feature’s name.
That mimics the way Facebook colonized the web with its SDK and login buttons that splashed its brand in front of tons of new and existing users. This made turned Facebook into a fundamental identity utility beyond its social network. Read more from techcrunch.com…
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