Crypto exchange, Coinbase, announced that it has completed an acquisition of Xapo’s institutional business to become the world’s largest crypto custodian. Coinbase Custody Acquires Xapo to Become Largest Crypto Custodian.
The acquisition comes as part of the company’s aggressive drive to expand its custody facilities.
Since the launch, it has grown to over $7 billion in Assets Under Custody (AUC). This stored on behalf of more than 120 clients in 14 different countries.
Xapo is a DFS-regulated New York company offering a multi-currency digital wallet and card operating on the global market.
The company has long been a pioneer in crypto-asset storage, which has securely held the crypto-currency of its clients since 2014.
The majority of the biggest clients of Xapo had already agreed to transfer their funds to Coinbase, bringing over 514,000 BTC under the control of Coinbase, according to a Fortune report.
If Coinbase can persuade the rest of Xapo’s customers to use its services, the exchange will have a total of 860,000 BTC or about 4 percent of the existing total bitcoin supply.
“This acquisition caps a tremendous period of growth and innovation for Coinbase Custody. From the start, we set out to build the world’s safest and most trusted institutional-grade custodian and today is an important milestone on that journey,” Sam McIngvale, CEO of Coinbase Custody, said in a statement.
“Besides custody, we are excited to investigate fresh methods of monetizing and leveraging crypto assets such as staking, borrowing against crypto portfolios, and lending crypto to trusted counterparties,” the company said.