Facebook Acqui-Hires Team from Blockchain Platform Startup Chainspace

Facebook acquired its first company in the blockchain space, smart contract protocol development and research firm Chainspace.

Chainspace is an 11-person company that was started by five well-credentialed co-founders, including two Cambridge PhDs, several researchers from the University College of London, and part of the core group of people from Vega Protocol-a blockchain public network for trading financial product.

According to Cheddar's sources, the move was done to augment Facebook's growing blockchain division.

Facebook did not disclose the amount paid for the acquisition, although Cheddar reported that Chainspace was in the process of raising an initial funding round of less than $4 million.

The move is part of Facebook's discrete plans to implement blockchain into its social media platform, including plans to launch a native cryptocurrency.

People familiar with the startup told Cheddar that it will shut down now that Facebook has hired most of its employees.

"Like many other companies, Facebook is exploring ways to leverage the power of blockchain technology. This new small team is exploring many different applications. We don't have anything further to share."

Facebook has likely been exploring potential cryptocurrency and blockchain integrations for over a year, with Mark Zuckerberg first mentioning the technology in his annual personal challenge address.

Within the last year, Facebook has been aggressively building its blockchain competencies, hiring software developers, engineers, and academics who are familiar with the technology.

Based on estimates from self-reported LinkedIn titles, between 35-55 people work at Facebook's blockchain division.