Coinbase has recently acquired Liquifi, a platform that helps digital asset firms manage token ownership. This deal, announced on July 2nd, will allow Coinbase to leverage Liquifi’s capabilities for launching and managing tokens.
The process of launching a token can be overwhelming for new teams because of “a maze of fragmented high-stakes, tax, and compliance hurdles,” as highlighted in their announcement.
Liquifi aims to tackle these challenges by automating essential workflows, therefore lessening the risks associated with token launches. This acquisition is expected to facilitate better collaboration between Coinbase and developers early in the token’s lifecycle.
According to the announcement, “We’ll integrate these features over time into Coinbase Prime to enhance various services like custody, trading, and financing, while providing top-notch tools for creators directly from our Prime platform.”
This news follows the recent introduction by Coinbase of its Stablecoin Payments Stack, which is aimed at e-commerce platforms. The new payment solutions aim to assist Payment Service Providers, marketplaces, and e-commerce infrastructure providers to accelerate stablecoin payment adoption.
As noted in a blog post from June 18th, “More than half of Fortune 500 companies operate on-chain, and a third of small businesses are already using crypto.” Yet, it still seems that stablecoin payments are not accessible to most platforms due to fragmented tools and lack of ready-to-use infrastructure. Coinbase payments are designed to change that narrative.
Recently, Pymnts discussed some hurdles faced by broader adoption of stablecoins, highlighting user experience as a significant barrier. While developers might be comfortable with crypto wallets, the average user generally isn’t. Concerns surrounding transaction signing, managing private keys, and navigating gas fees can make stable payments challenging for the inexperienced.
“This all comes down to what consumers and businesses want,” shared Large Damodaran, Executive Vice President of Blockchain and Digital Assets at Mastercard, in a May interview. “It’s not just about cost; there’s also trust, simplicity, and convenience involved. Customers seek a seamless experience.”
“Transferring money is different from creating a complete use case,” he continued. “Building trust and ensuring a great user experience is essential.”
