A large American cryptocurrency exchange Coinbase has announced the completion of a deal to acquire a custodial service for Xapo institutional clients. The transaction amount was $55 million.
After the transaction was completed, many customers of the Xapo service agreed to transfer funds to the Coinbase Custody vault. More than 514,000 bitcoins are stored on the Coinbase service. If the American exchange convinces the remaining Xapo customers to also transfer funds to Coinbase Custody,the volume of bitcoins in the service’s storage will increase to 860,000.
Note that the Xapo company will not cease to exist – a cryptocurrency exchange and a bitcoin storage in Switzerland will work 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, CEO of the service.
Negotiations on the purchase of the Xapo service have been conducted since May of this year. The popularity of the service was due to the fact that the company did not take commissions for money storage services, and received profit by providing over-the-counter trading services using assets that are on wallets