Coinbase, one of the largest cryptocurrency exchanges in the market, informed it purchased Xapo’s institutional business. Xapo Institutions allows businesses or financial companies to organize, safeguard and manage Bitcoin (BTC) accounts. The information was released by Coinbase a few hours ago in a blog post.
Coinbase Enhances Its Institutional Solutions
The cryptocurrency market continues to evolve. This time, Coinbase, a recognized crypto platform for traders and crypto enthusiasts, decided to purchase Xapo’s institutional business. This comes in a moment in which financial institutions are becoming highly interested in virtual currencies and the cryptocurrency market.
1/ Today, Coinbase Custody has completed an acquisition of Xapo’s institutional businesses. With over $7 billion in assets, we’re now the most popular place for institutions to store cryptocurrency. Read more here https://t.co/bL3oj1Pyfl
— Coinbase Custody (@CoinbaseCustody) August 16, 2019
Coinbase Custody was launched a year ago and it has grown to over $7 billion in Assets Under Custody (AUC) that are stored on behalf of 120 clients in 14 different countries. As reported by Coinbase, this is the largest, most globally recognized and trusted institutional custodian in the world.
Xapo has been working in order to help clients store their cryptocurrency assets during the last years. Since 2014, this firm has been helping Bitcoin become a more secure asset. Several cryptocurrency exchanges and platforms have been hacked, and using recognized custodians is something the industry needs and required for a long period. At the same time, Xapo holds a New York BitLicense and is recognized as a Gibraltar-licensed E-money institution.
Coinbase wrote about this acquisition:
“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.”
The crypto exchange will continue to focus on its clients and they will be working day after day to provide them with a true peace-of-mind in knowing their digital assets are safe and accessible at any moment. Coinbase is working so as to offer solutions to institutional clients, hedge funds, family offices and more.
“Xapo has been a tremendous flagbearer for Bitcoin and the economic equality it can offer to billions across the globe. We’re honored to carry this flag onward,” the blog post reads.
Cryptocurrencies have been expanding around the world during the last years. However, larger investors and institutions have been requesting market participants to invest in solutions to hold digital assets without having to be worried about security. Coinbase is working in this direction and is trying to offer the best solutions for companies to store their funds properly.