Coinbase Custody Acquires Xapo's Institutional Business

Coinbase announced the acquisition of the Xapo’s Institutional Business.

Xapo is a New York DFS regulated entity and a Gibraltar licensed E-money institution in 2014, that provides with a multi-currency digital wallet and card that operates in the global market. With the help of Xapo Bitcoin wallet, it offers its customers the ability to send, receive, spend and store their money across the globe.

Coinbase Custody is the custodian arm of leading cryptocurrency exchange Coinbase. The 'Assets Under Custody (AUC)' has marked over the $7 Billion, making it the world largest crypto-custodian in a span of one year. The AUC count is for around 120 clients in more than 14 countries, the announcement notes.

More about the Acquisition Deal

The firm will even going to work its retail Bitcoin exchange but has even decided to cash in on its custody business by striking a deal with the Coinbase, said the announcement.

The announcement also revealed that the Xapo’s biggest client has already decided to move their crypto-asset to Coinbase, which will now be going to store more than half a million Bitcoin for the customers of Xapo’s.

The Coinbase announcement said, "Through the acquisition of Xapo’s institutional businesses, we’re now proud to act not only as the gateway for millions of people to cryptocurrency, but also as the world’s largest and most trusted steward of digital assets."

After the completion of a deal, Coinbase plans to explore some of the new ways to monetize and use crypto assets such as the staking, borrowing against the Crypto portfolios and lending the crypto to trusted counterparties, apart from the custody’s services.