Coinbase has acquired Liquifi, a startup based in San Francisco that specializes in token vesting, distribution, and compliance automation.

The financial details of the acquisition were not disclosed.

This acquisition aims to strengthen Coinbase’s token issuance capabilities by integrating Liquifi’s tools into Coinbase Prime, its platform for institutional clients.

According to Greg Tusar, Coinbase’s VP of Institutional Product, Liquifi’s services simplify token launches by automating workflows and addressing regulatory challenges.

Founded in 2021, Liquifi has raised over US$5 million in funding and manages more than US$8.5 billion in token value for clients including the Uniswap Foundation and OP Labs.

The company processed US$1.7 billion in token payouts globally in 2024.

This acquisition is Coinbase’s fourth in 2025, following its US$2.9 billion purchase of derivatives platform Deribit in May.

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🔗 Source: The Block

🧠 Food for thought

1️⃣ Coinbase’s M&A strategy follows classic tech consolidation playbook

The Liquifi acquisition continues Coinbase’s transformation from acquisition-averse startup to aggressive consolidator, a shift that began in 2018 with the hiring of LinkedIn’s M&A head Emilie Choi.

When Choi joined, Coinbase had disclosed only three acquisitions in six years, but her appointment signaled a strategic pivot toward using acquisitions for growth 1.

This evolution mirrors the playbook of mature tech companies, with Coinbase completing more acquisitions in 2025 alone than in all of 2024, culminating in the massive $2.9 billion Deribit purchase.

The strategy focuses on specific acquisition types that Choi identified in 2018: acquihires for talent, tuck-ins for product enhancement, strategic acquisitions for market expansion, and fintech companies with compliance expertise 2.

Liquifi fits the compliance-focused acquisition model, addressing regulatory challenges that are particularly acute in token issuance where legal status depends heavily on launch strategy and distribution methods 3.

2️⃣ Building an institutional-grade infrastructure stack for the token economy

Coinbase’s Liquifi purchase represents a systematic approach to addressing the complex compliance needs of token issuers in an increasingly regulated environment.

The acquisition builds on Coinbase’s previous institutional moves, including the $55 million purchase of Xapo’s custody business in 2019 that positioned the company to manage over $7 billion in crypto assets 4.

Token compliance has become a critical pain point, with regulatory authorities worldwide implementing stricter rules. Singapore’s Monetary Authority, for instance, will require all digital token service providers to be licensed by June 30, 2025 5.

The compliance burden for token issuers is substantial, with projects needing to navigate securities laws, KYC/AML regulations, and cross-border transaction requirements to avoid penalties or shutdowns 6.

By integrating Liquifi’s $8.5 billion token management platform that served over 100 customers including the Uniswap Foundation, Coinbase creates a comprehensive solution for the estimated $1.7 billion in global token payouts processed annually.

3️⃣ Vertical integration as competitive strategy in maturing crypto infrastructure

Coinbase’s acquisition represents a vertical integration strategy in the fragmented crypto infrastructure landscape, where specialized service providers are being consolidated into comprehensive platforms.

The company’s move to build an “end-to-end issuance stack” echoes its 2018 acquisition of Keystone Capital Corp. and other firms to become a fully regulated broker-dealer, allowing it to offer blockchain-based securities under SEC oversight 7.

This integration addresses a critical market need, as token offerings have evolved from speculative experiments to essential capital-raising tools, with compliance now recognized as a growth strategy rather than merely a cost center 8.

The acquisition pattern shows Coinbase positioning itself at multiple points in the value chain, from custody (Xapo) to derivatives trading (Deribit) to token issuance and management (Liquifi), creating an ecosystem that increases switching costs for institutional clients.

Similar consolidation patterns have emerged across the tech industry, with platforms that successfully integrate compliance, security, and user experience typically capturing larger market share in regulated financial services.

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