In a recent report, Breadwinner AG, also known as BRD, a cryptocurrency wallet firm, has been bought by Coinbase Inc. for an undisclosed sum.
The company’s cryptocurrency wallet, formerly known as Breadwallet and Bread, was founded in 2015 and is a mobile-first wallet with over 10 million customers and $20 billion in assets under management.
The company also offers crypto purchases, commercial registration, credit rating information, management tools, news, and merchant services in addition to the wallet.
The BRD app is accessible in over 170 countries for iOS and Android and contains features like iCloud key backup, configurable widgets, direct blockchain access, and 14 language compatibility. The app’s code is open source, and users receive BRD incentives based on usage, which are a type of transferable cryptocurrency.
Reaction to the Purchase
Reacting to the news of the purchase, BRD’s co-founders Adam Traidman and Aaron Voisine released a letter to their customers informing them of the recent development. They also assured their client base of the safety and security of their funds.
They wrote, “Today, we would like to share the news that members of our team will be continuing our mission at Coinbase, where we will work together to bring the power of decentralization to even more users around the globe. At this time, nothing will change in the BRD wallet app, and as always, your funds are safe and secure.”
They continued, “You may continue to transact normally. In the future, BRD wallet users will have an optional migration path to self custody with Coinbase Wallet, which will include a special gift. Stay tuned for more details to come in 2022.”
Coinbase announced on Twitter that it is boosting its investment in self-custody and Web3 to increase global financial freedom. It wrote,” the BRD team will be joining @CoinbaseWallet to help accelerate web3 adoption. The team brings deep expertise in self-custody for crypto wallets, which will help Wallet enable more people to safely and securely access the decentralized world of crypto.”
According to Crunchbase, BRD had raised $54.8 million in venture capital funding before its acquisition. Xpring, SBI Crypto, East Ventures, Das Capital, and OKWave were among the investors.
The purchase was disclosed just one day after the Senate Banking Committee wrote letters to Coinbase and other companies inquiring about regulatory frameworks and stablecoins.
Coinbase is Aiding Crypto Adoption
In the United States, Coinbase is the most popular consumer-facing crypto-asset exchange. The company, which has been in business since 2012, offers customers to purchase, sell, and store crypto-assets such as bitcoin and ethereum.
Though Coinbase is renowned for its crypto-asset exchange, the company has broader ambitions than simply facilitating the purchase and sale of cryptocurrency. The company’s declared purpose matches the main ambition of crypto asset enthusiasts: to create a new, “open financial system.”
The main aim of Coinbase, according to CEO Brian Armstrong, is to enhance economic freedom around the world.