Coinbase, the world's largest cryptocurrency exchange, acquired the Hong Kong custodian service Xapo.
The acquisition is expected to provide Coinbase with the opportunity to expand its custodial capabilities – the crypto exchange will be able to store up to $ 7 billion. Earlier reports said Coinbase could store about $ 1.3 billion. It is known that negotiations between Coinbase and Xapo regarding the future merger began in mid-May of this year.
The acquisition cost the US crypto exchange $ 55 million. It is known that most of the major customers of Xapo agreed to continue cooperation with Coinbase, as a result of which over 514 thousand BTC were transferred under the control of the exchange.
The acquisition of Xapo for Coinbase is another step towards the implementation of a plan to diversify its cryptocurrency asset exchange activities. Brian Armstrong, CEO of Coinbase, noted that on average 10 clients appear on the crypto exchange every week, which bring about $ 200 million into storage. With the acquisition of Xapo, Coibase's user base has expanded to 150 customers.
Meanwhile, Sam Mackingale, CEO of Coinbase Custody, drew attention to the fact that in the future the service will expand the range of offered assets and services. Recall that Xapo provided its customers access only to Bitcoin, while Coinbase supports dozens of digital assets. Moreover, Coinbase Custody will provide access to stacking, insurance products, as well as customers will be able to use investment solutions of third-party operators.
