Coinbase finishes $55mn acquisition of Xapo’s custody business

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California-based cryptocurrency exchange Coinbase has acquired Xapo’s institutional business. The deal is said to be struck at an amount of $55 million, as per industry reports.

The acquisition has escalated Coinbase’s ‘Assets Under Custody (AUC)’ mark to over $ 7 billion thereby, making it the world’s largest crypto custodian in a span of one year, Coinbase claimed in a statement. The AUC count is for more than 120 clients in 14 countries.

Founded in 2013, Xapo is a global fintech company built on bitcoin & blockchain technology. The company stores crypto-assets for its customers and safeguard the same with its security techniques. Through its bitcoin wallet, it provides its customers the ability to send, receive, spend and store their money globally.

The firm will continue running its retail Bitcoin exchange but has decided to cash in on its custody business by striking the deal with Coinbase, according to a report by Fortune.

The report added that most of Xapo’s biggest clients have already decided to move their crypto assets to Coinbase, which will now store more than half a million bitcoin for Xapo’s customers.

Post the acquisition, Coinbase plans to explore new ways to monetize and leverage crypto assets such as staking, borrowing against crypto portfolios and lending crypto to trusted counterparties, in additions to its custody services.