Coinbase, a major US cryptocurrency exchange, announced the completion of a takeover of custodial services for Xapo institutional clients. The deal amounted to $ 55 million.
After the transaction was completed, many Xapo customers agreed to transfer funds to Coinbase Custody. Coinbase service stores more than 514,000 bitcoins. If the US exchange convinces the remaining Xapo customers to also transfer funds to Coinbase Custody, then the amount of bitcoins in the service store will increase to 860,000.
Note that Xapo will not cease to exist – a cryptocurrency exchange and a bitcoin store in Switzerland will operate for retail customers.
“This acquisition highlights the growth and innovation of Coinbase Custody. From the very beginning, we intended to create the most reliable and trusted custodial service in the world and today is an important milestone on this path, ”said Sam McIngvale, general manager of the service.
Negotiations on the purchase of the Xapo service have been ongoing since May of this year. The popularity of the service was due to the fact that the company did not charge fees for storage services, and made a profit by providing over-the-counter trading services using assets that are in wallets.