Coinbase Acquires Xapo’s Institutional Custody Business
The custodial division of the Coinbase cryptocurrency company has confirmed the acquisition of the Xapo service for $55 million.
As for now, on behalf of more than 120 clients in 14 different countries, Coinbase Custody stores digital assets valued at more than $7 billion. The figure makes the company the biggest institutional custodial in the industry.
According to some media, the majority of the Xapo’s clients agreed on the transaction of their assets (514 000 BTC) to Coinbase, but some have not yet decided. If the company manages to confirm the rest of the customers, Coinbase Custody will have 4% of the total bitcoin supply under custody.
Interestingly, BitGo, another custodian, joined the fight for the Xapo’s users. The company offered the institutional investors a free 12-months servicing.
It is worth noting that Xapo preserves control over the retail business and the vault in Switzerland. The issue is the institutional branch only.
We recall that Coinbase Custody reported that there is $1,3 billion worth of assets under custody of the company and that it’s going to increase the amount to $2 billion in the short term.