ShapeShift has acquired a startup that developed a tool for exchanging cryptocurrencies more efficiently.
The company said Wednesday that it acquired the Texas-based Bitfract after it made the tool – allowing for the exchange of bitcoin for "dozens of digital assets in a single transaction" using the company's API. The idea is that the tool makes it easier for crypto-buyers to switch up their portfolio without having to execute numerous transactions.
"This demonstrated a great alignment of strategy and thinking, and their execution was so exceptional that we wanted to bring their talented team and technology on board," CEO Erik Voorhees said in a statement.
The tool works by letting investors choose what percentage of their holdings should be in a particular asset, add the destination wallet addresses and send bitcoin in a single mass transaction.
ShapeShift intends to continue operating Bitfract's tool in its present form "as a demonstration of the power of ShapeShift's open API." However, the exchange will also integrate the platform's mechanism into its own platform, creating a native "multiple output transactions" function.
"We believe in a decentralized future where individuals freely control their digital wealth, and our team is honored to work alongside Erik and everyone at ShapeShift to make this a reality," Bitfract co-founder and CEO Willy Ogorzaly said of the acquisition.
The move comes just less than a year after ShapeShift announced the acquisition of KeepKey, a bitcoin hardware wallet startup. ShapeShift raised a $10.4 million Series A funding round in March 2017.
ShapeShift image via Piotr Swat / Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
