FILE PHOTO: Smartphone with displayed Coinbase logo and representation of cryptocurrencies are placed on a keyboard in this illustration taken, June 8, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Crypto heavyweight Coinbase said on Tuesday it has bought investment platform Echo in a nearly $375 million cash-and-stock deal, aiming to bring fundraising tools to its platform.
Dealmaking within the digital assets industry has picked up pace this year as a crypto-friendly Trump administration encourages companies to expand their business in the U.S.
Last week, cryptocurrency exchange Kraken unveiled a $100 million deal for futures exchange Small Exchange,paving the way to launch a fully U.S.-based derivatives suite.
Echo's platform makes raising capital and investing more accessible to the crypto communitythrough private and public token sales.
"We want to create more accessible, efficient, and transparent capital markets," Coinbase said in a blog post.
While Coinbase will start with crypto token sales via Echo's Sonar platform, the company later plans on expanding support to tokenized securities and real-world assets.
Echo was founded by crypto trader Jordan Fish, widely known by his "Cobie" pseudonym. The platform has helped crypto projects raise more than $200 million since its launch two years ago.
In May, Coinbase had struck a $2.9 billion deal for crypto options provider Deribit, plugging a gap in its derivatives portfolio and strengthening its international presence.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
