Coinbase Will Control 5 Percent of Bitcoin’s Circulating Supply After Acquiring Xapo

Libra Coin News
Fri, 08/16/2019 - 06:17
Alex Dovbnya
Coinbase will store a whopping $7 bln worth of crypto after taking over Xapo’s custody business
Cover image via

San Francisco-based cryptocurrency exchange Coinbase has asserted its dominance in the cryptocurrency custody niche by acquiring Xapo for $55 mln, Fortune reports. As a result of this deal, Coinbase will be responsible for storing a staggering 5 percent of Bitcoin’s circulating supply.

Coinbase UK Partners with ClearBank After Being Snubbed by Barclays

Coinbase’s digital wealth

An anonymous source told Fortune that the Brian Armstrong-led exchange has managed to snatch the deal from mutual fund giant Fidelity Investments, which has been keen on crypto for a long time.

As reported by U.Today, Grayscale recently transferred $2.7 bln from Xapo, its long-time partner, to Coinbase Custody, which is considered to be one of the biggest cryptocurrency transactions ever.

Xapo will still control its ultra-secure vault in the Swiss Alps that has been grabbing headlines in the mainstream media for a long time. Wences Casares will also remain the firm’s CEO.

Bitcoin Cash Nightmare Keeps Haunting Cryptocurrency Exchange Coinbase

Shifting focus to retail

From now on, Xapo will solely focus on operating its Bitcoin exchange after ceding ground to Coinbase in the crypto custody race.

It’s hard to do a consumer business well at the same time as an institutional business. Earlier this year, we looked for a home for it, said Casares.

Its retail business enjoys a growing popularity in Latin America, and Casares himself has a vested interest in that region given that he comes from inflation-stricken Argentina.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

This site uses cookies for different purposes. Please set your preferences in Consent Settings and visit our Cookie Policy for more information on how and why cookies are used on this site.

Cookie policy