Coinbase buys token management startup Liquifi to expand services

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.

🔗 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.