On August 15, Coinbase, the largest US digital asset exchange, announced the acquisition of the Xapo institutional service, making the company the world's largest cryptocurrency custodian.
Solving the problem of reliable and secure storage of cryptocurrency assets is one of the priority tasks for the new financial industry. Therefore, the acquisition of a reputable Xapo business for $55 million brings Coinbase to a new level, with higher standards for storing funds for its customers.
In partnership with Xapo, Coinbase cryptocurrency exchange has faced a competitor in the face of investment giant Fidelity and has become more authoritative. As a result, the innovative Coinbase Custody platform, launched just a year ago, becomes a custodian of assets worth about $7 billion from more than 120 institutional clients from 14 countries.
Talking about the prospects of the platform, Coinbase Custody CEO Sam McIngvale announced his intention to enter the cryptocurrency lending market:
"In choosing Coinbase, we are confident that the Institutional Custody Business is going to a company that can provide great insurance, borrowing and investment alternatives.
Currently, most Xapo customers have decided to continue working with Coinbase. Thus, most of the assets held in Xapo can go to Coinbase Custody, and this is more than 514,000 bitcoins worth $5.3 billion. In this case, the total amount on the custody platform of Coinbase will exceed $8 billion, which corresponds to 860 thousand bitcoins.