Coinbase has risen to become the largest cryptocurrency custodian, with the acquisition of Xapo’s institutional business. Immediate reports indicate that the US crypto exchange paid $55 million for the assets in question. The exchange also reportedly beat investment giant Fidelity that was also in the running for the Xapo business.
The acquisition comes at a time when Coinbase’s custodian business has grown to over $7 billion in assets under custody. Coinbase currently services over 120 clients distributed in over 14 countries. Following the acquisition, a number of Xapo’s clients have already moved their crypto assets to the crypto exchange for storage. As it stands, Coinbase stands to store as much as 514,000 in Bitcoin from Xapo customers.
“From the start, our goal has been to build a trusted foundation for institutional investment in Bitcoin (BTC) and crypto assets in general. We’re thrilled to help enable some of the tremendous demand for this emerging asset class,” the exchange said in a statement.
Xapo’s business is a great addition to the Coinbase portfolio, as the firm has risen in the ranks to become a pioneer in crypto assets storage. Xapo has also made a name for itself in the creation of security techniques highly needed in ensuring client privacy.
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For Coinbase, the acquisition underscores its focus in achieving growth both organically and inorganically. The company has grown on its mission to try and ensure easy and secure access to cryptocurrencies. With the acquisition of Xapo’s business, the firm strengthens its edge in becoming the gateway for millions of people looking for ways to venture into the cryptocurrency sector.
Providing clients peace of mind about crypto safe storage is Coinbase’s primary goal as it continues to affirm its competitive edge in the burgeoning sector. In addition to providing crypto custodian services, Coinbase is also focused on providing new ways of monetizing and leveraging crypto assets. The company currently allows people to borrow against their crypto portfolios as well as lend to other trusted partners.
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