Coinbase Custody, the custodial arm of crypto exchange and wallet provider Coinbase, has become the worlds largest crypto custodian following the acquisition of crypto wallet and storage competitor Xapo’s custody services.
Following the completion of the deal, Coinbase Custody now manages upwards of $7 billion in digital assets, the largest volume of any cryptocurrency custody provider. The deal, which was finalized yesterday, sees two of the industries longest running cryptocurrency service providers come together to form a constructive and beneficial pact.
Hong Kong-based Xapo was formed in 2014 by Argentinian native Wences Casares as a Bitcoin wallet provider and cold storage vault. Over time the company has struggled to compete for custody solutions on the international market, facing strict competition from several larger financial institutions. The acquisition of its institutional business by Coinbase helps to improve the standing of both Xapo and Coinbase on the global front.
Following the development, Coinbase Custody now reportedly stores the digital assets of more than 120 clients from 14 different countries, making it the largest cryptocurrency custody provider in existence. “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,” stated Coinbase in a press release announcing the news.
Expanding services
The development is the next step in plans by Coinbase to provide cryptocurrency ‘staking’, whereby customers can utilize their cryptocurrency as a means to lend money that is backed by trusted third-party organizations. The move also means customers are able to lend cryptocurrency in a regulated, secure and trusted environment.
Earlier this year, Coinbase announced plans to expand its services to include cryptocurrency debit and ATM cards, which would allow customers to spend and withdraw funds in various European nations. Initially, the cards would be supported in Spain, Germany, France, Italy, Ireland, and the Netherlands, following on from a successful launch of the cards in the UK.
Coinbase Custody has been making waves in the cryptocurrency sector this year, recently appointing two major additions to the board of its trust company. Richard Neiman and Robert Easton, two long-time financial experts with decades of experience in banking, financial services, and public policy, were appointed positions to assist with regulatory issues in the state of New York.
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