Coinbase Custody Acquires Cryptocurrency Wallet Xapo

Coinbase Custody launch

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Cryptocurrency exchange Coinbase has announced that it has acquired cryptocurrency wallet and custody service provider, Xapo.

In a Medium post, the exchange said that in just one year Coinbase Custody has grown to over $7 billion in Assets Under Custody (AUC) stored on behalf of more than 120 clients in 14 different countries.

The exchange said, “Through our consumer products, Coinbase has helped more people experience their first crypto transactions than any other company. Like Xapo, we share the goal of making Bitcoin and other cryptocurrencies accessible in a way that’s secure, safe and compliant with local laws. 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.”

Coinbase Custody has only gone from strength to strength. In June this year, Coinbase Custody Chief Executive Officer (CEO) Sam McIngvale and Coinbase Chief Information Security Officer (CISO) Philip Martin, visited the United Kingdom, to discuss “the institutional cryptoeconomy with a range of prospects and clients.”

They were quoted as saying, “There’s a narrative out there that institutional-grade services don’t exist in crypto. This isn’t true. Coinbase Custody is a regulated, insured and secure custodian. We have $1.3bn Assets Under Custody (AUC) and expect to hit $2bn soon. We have no intention of stopping there.”

Discussing security, Martin said, “We really built our security by drawing on a range of different technologies and systems. We’re always adapting, that is what gives us this strong security foundation.”

Last year, in October, the New York State Department of Financial Services (DFS) had approved the license application for Coinbase Custody Trust Company LLC, a Coinbase subsidiary to operate as a limited purpose trust company.

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