Aug 19, 2019 18:47 UTC
Aug 19, 2019 at 18:47 UTC
In a blog published by Coinbase on August 15th it announced that it has acquired crypto pioneer Xapo to become the single largest cryptocurrency and digital asset custody of the world.
Elaborating on its association with Xapo, ‘The Coinbase Blog’ said,
“It’s with huge pride that we welcome Xapo’s Institutional customers to Coinbase. Their legacy, knowledge and experience will help to make our mission of creating an open financial system for the world a reality.”
Coinbase now officially tends to more than 120 different clients across 14 countries and amounts to a whooping $7 billion in assets under custodial arrangements.
Over just the last two years, the company acquired 10 significant firms such as earn.com, Neutrino, and Blockspring among others.
Coinbase has established itself as the most suitable platform for dealing Bitcoin and other cryptocurrencies since its inception in 2012. They are committed to stringent regulation and compliance with regional securities laws in every country they operate in, thus making themselves extremely trustworthy to their clients.
Custody, today is not just providing storage but also the Proof of Stake (PoS) consensus mechanism. Staking, lending against holdings, and many other financial services will be gradually added in future expantions of Coinbase.
Coinbase Custody charges 50 basis points, or 0.5 percent, per year on held assets, after an “implementation” fee of 0 to $10,000 for its services. Given that the setup fee is by nature non-recurring, they care more about the yearly income generated by storing crypto-assets.
With the estimated holding of $7 billion in asstes under custody, at 50 basis points per year, Coinbase may earn about $35 million per year in fees
Coinbase has become a one stop solution for institutions with a global OTC desk and custodial services. Its association with any token or trading platform results in a positive effect on them, an effect popular in the crypto world as “The Coinbase Effect”.