Coinbase, the Bitcoin exchange, has bought Xapo’s institutional custody solution for $ 55 million. By its own account, Coinbase is the world’s largest crypto-custodian.
In an official announcement, the Bitcoin exchange announces Coinbase as the world’s largest cryptocurrency custodian. According to the US company currently holds seven billion US dollars in various assets under safekeeping. The report follows the alleged loss of two important business partners.
The announcement follows the purchase of custody solutions from Xapo, a Hong Kong-based wallet provider. The merger of the two companies ultimately promises to expand the Coinbase business. Coinbase plans to make cryptocurrencies available to a wider audience:
Like Xapo, we share the goal of making Bitcoin and other cryptocurrencies accessible in a secure and lawful manner.
In addition to the custody solution, the company also plans to offer services such as staking and lending from Bitcoin & Co. The company also aims to support institutional clients such as hedge funds, family offices and trading desks.
Bitcoin Exchange Coinbase and the bank boycott
While the company welcomes a new partner, it is likely to compensate for two losses.
On 15 August we received the news that Coinbase had lost a banking partner with Barclays. Accordingly, the English Bank ended the relationship with the US Bitcoin exchange. Previously, Barclays had made it possible for Coinbase to have access to the Faster Payments system, which in turn made fast cash transactions possible.
The termination of the partnership will mean that UK Coinbase customers will have to wait longer for deposits and withdrawals. As it stands, however, the loss will soon be offset by ClearBank. Accordingly, the British start-up agreed to jump in as a substitute.
So far, unconfirmed rumors that the Spanish bank Santander should have terminated their cooperation with the crypto-depository. For example, one Reddit user reported that a Santander employee had told him that customers were no longer allowed to transfer money to Coinbase.
A majority of Xapo’s customers, according to Fortune, are now ready to send deposits totaling 514,000 Bitcoin from Xapo to Coinbase.
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