Distributed Systems
Distributed Systems was a San Francisco-based startup that built computer vision identity verification technology for KYC/AML compliance in cryptocurrency and financial services, extending into decentralized identity and permissioned tokens before being acquired by Coinbase in August 2018.
- Company typePrivate
- Founded2015
- HeadquartersSan Francisco, United States
- Headcount1–10
- GTM type—
- Offering—
What Distributed Systems does
Distributed Systems was a San Francisco-based digital identity and machine intelligence startup founded in 2015. The company built computer vision-based identity verification technology designed to scale KYC and AML compliance processes for financial services and cryptocurrency platforms. Its product portfolio comprised three integrated offerings: a core identity verification service using computer vision, a decentralized identity system enabling users to control their own identity data and privacy on blockchain platforms, and permissioned tokens with built-in compliance features for regulated blockchain transactions. The company pursued an API-first go-to-market strategy targeting enterprise clients in the cryptocurrency and financial services vertical, with a likely B2B SaaS subscription revenue model, though no public pricing was ever disclosed. Distributed Systems was a Y Combinator alumnus and raised approximately $1.7 million in seed funding led by Floodgate, with participation from The House Fund, Dorm Room Fund, and Rough Draft Ventures. The five-person team was co-founded by Nikhil Srinivasan (CEO), Andrew Gold, Alex Kern, Jackson Callaway, and Rohith Varanasi. On August 15, 2018, the company was acquired by Coinbase, the leading US cryptocurrency exchange, with the team continuing to develop identity verification and decentralized identity capabilities within the Coinbase ecosystem.
Distributed Systems firmographics
Firmographics- Name
- Distributed Systems
- Legal name
- Distributed Systems
- Website
- https://distributedsystems.com
- Company type
- Private
- Founded year
- 2015
- Operating status
- Acquired
- Headcount range
- 1–10 employees
- Short description
- Distributed Systems was a San Francisco-based startup that built computer vision identity verification technology for KYC/AML compliance in cryptocurrency and financial services, extending into decentralized identity and permissioned tokens before being acquired by Coinbase in August 2018.
- Ownership category
- akta.pro rank
Distributed Systems industry classification
Industry- NAICS
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (518210), Computer Systems Design Services (541512)
- SIC
- Services-Computer Programming, Data Processing, Etc. (7370), Services-Computer Programming Services (7371)
- akta.pro primary industry
- KYC/KYB Identity Verification & Onboarding (FSADALAA)
- akta.pro secondary industries
- AML/KYC, KYB & Identity Verification (VASP/Travel Rule) (FSAPAJAC), Identity Verification, Proofing & KYC (IDV) (HDAEAJAI), Identity Verification & Proofing (IDV, KYC, Biometrics) (HDADAAAF), Fraud Prevention & Identity Verification (IDV/KYC) (BPAMAEAI), Decentralized Identity & Verifiable Credentials for Finance (DID/KYC Reuse) (FSAGAMAE)
Keywords
Where Distributed Systems is headquartered
LocationHeadquarters
- HQ city
- San Francisco
- HQ country
- United States
- HQ region
- North America
Markets served
Distributed Systems business model
Business modelRevenue model
- Identity Verification Services: Computer vision-based identity verification services, likely B2B SaaS model for enterprise clients requiring KYC compliance. Revenue model not explicitly disclosed in available sources.
Go-to-market motion1 record
Distribution channels1 record
Distributed Systems product offering
Product offeringCore offering
Distributed Systems built computer vision-based identity verification technology to scale KYC/AML compliance for cryptocurrency exchanges and financial platforms. The company extended its services to decentralized identity systems, enabling users to control their own data and privacy, and to permissioned blockchain tokens with built-in compliance features for regulated transactions.
Product overview
Distributed Systems was a technology company focused on identity verification and privacy solutions. The core product was a computer vision-based identity verification system, which was then extended to support decentralized identities (allowing users to control their own data) and permissioned tokens (compliant blockchain tokens). Following its acquisition by Coinbase in August 2018, the team continued developing these identity verification technologies within the Coinbase ecosystem.
Differentiator
Problem solved
Functional benefit
Quantifiable outcome
- Acquisition by Coinbase validates technology approach and market opportunity for identity verification in crypto
Companies that use Distributed Systems
Customer profileNamed customers1 record
Segments1 record
Distributed Systems technology and API
TechnologyAPI detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
AI capability2 records
Feature3 records
Distributed Systems partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- CoinbaseflagshipDistributed Systems was acquired by Coinbase on August 15, 2018. The acquisition brought the 5-person team (Andrew Gold, Alex Kern, Nikhil Srinivasan, Jackson Callaway, Rohith Varanasi) into Coinbase to work on identity verification using computer vision and extending services to decentralized identities and permissioned tokens. Coinbase is the leading cryptocurrency exchange in the US.
Scale indicators1 record
Recent moves7 records
Expansion highlights5 records
Distributed Systems competitors and assessment
Company assessmentBroad incumbents
- Coinbase: Direct parent of Distributed Systems and the largest U.S. cryptocurrency exchange; consumes and integrates the team's computer-vision IDV and decentralized-identity technology, operating a broader brokerage/exchange platform into which the IDV capability is embedded.
- Trulioo: Global identity verification and business verification (KYB) platform for AML/KYC compliance; broader portfolio than Distributed Systems but directly comparable in serving crypto and financial-services compliance buyers.
- Chainalysis: Blockchain analytics and compliance platform providing AML/KYC and transaction monitoring for VASPs; adjacent identity-and-compliance category relevant to Coinbase's broader crypto compliance stack that hosts Distributed Systems' technology.
Direct peers
- Onfido: AI-based identity verification provider serving crypto, fintech, and financial-services customers; competes head-on with Distributed Systems' computer-vision IDV stack in the same enterprise KYC/AML buying motion and regulatory use cases.
- Jumio: Established identity verification and KYC/AML platform; comparable in targeting crypto exchanges and fintechs for document verification, liveness checks, and AML screening — directly overlapping with Distributed Systems' core offering.
- Persona: Identity verification and KYC platform used by crypto and fintech companies, with computer-vision and document-authentication tooling; product overlap and go-to-market motion closely mirror Distributed Systems' identity-verification focus.
- Civic: Decentralized identity and KYC platform built on blockchain, letting users control reusable verified credentials — directly aligned with Distributed Systems' decentralized-identity thesis and permissioned-token extensions.
- Veriff: Identity-verification provider using computer-vision-based document and biometric checks for crypto, fintech, and gig-economy clients; comparable core technology and customer segment to Distributed Systems.
Emerging players
- SelfKey: Self-sovereign identity and KYC platform with a tokenized credentials marketplace; overlaps with Distributed Systems' decentralized-identity and permissioned-token product extensions.
Others
- Plaid: Financial-data connectivity and account/identity verification layer; while not a direct IDV competitor, Plaid represents a comparable enabling infrastructure for fintech and crypto onboarding, especially relevant to Coinbase's identity-and-onboarding roadmap.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat3 records
Key risks4 records
Key highlights5 records
Customer concentration
Distributed Systems social profiles
Digital presenceDistributed Systems financial estimates
Financial estimateRevenue estimate
Valuation estimate
Distributed Systems leadership team
Management profileNumber of profiles
Distributed Systems funding detail
Funding detailFunding overview
Funding rounds2 records
Investors4 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Distributed Systems M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Distributed Systems
What does Distributed Systems do?
Distributed Systems built computer vision-based identity verification technology to scale KYC/AML compliance for cryptocurrency exchanges and financial platforms. The company extended its services to decentralized identity systems, enabling users to control their own data and privacy, and to permissioned blockchain tokens with built-in compliance features for regulated transactions.
Is Distributed Systems a public or private company?
Distributed Systems is a private company. It is currently acquired.
When was Distributed Systems founded?
Distributed Systems was founded in 2015. It employs 1 to 10 people.
Where is Distributed Systems based?
Distributed Systems is headquartered in San Francisco, United States, in the North America region.
How does Distributed Systems make money?
One revenue line is on record: identity Verification Services.
Who are Distributed Systems's main competitors?
Broad incumbents on record are Coinbase, Trulioo and Chainalysis. Direct peers are Onfido, Jumio, Persona, Civic and Veriff. SelfKey is listed as an emerging player. Plaid is listed as an others.
Does Distributed Systems have an API?
No public API is recorded for Distributed Systems.
What industry is Distributed Systems in?
Its primary akta.pro industry code is FSADALAA, KYC/KYB Identity Verification & Onboarding, with a secondary code of FSAPAJAC, AML/KYC, KYB & Identity Verification (VASP/Travel Rule). Its NAICS code is 518210 and its SIC code is 7370.