Coinbase, the US-based cryptocurrency exchange, has announced the acquisition of Xapo’s corporate wing. Xapo is a Hong Kong-based cryptocurrency company that provides Cryptocurrency wallets, Bitcoin cold storage and also Bitcoin debit cards. Reportedly, the purchase amounted to $ 55 million.
Coinbase.com is one of the most reliable stock exchanges operating in the US and Europe. Coinbase, on the other hand, was said to be competing with Fidelity on Xapo. The report says Coinbase is ”favorable for Xapo to have acceptable security and regulatory requirements for its customers rağmen, although some other companies have made higher offers.
Coinbase Pro and Coinbase Custody Services serve only corporate customers (high-volume investors).
With Xapo’s oversight arm, Coinbase has now become the world’s largest crypto storage company. Xapo oversees total assets worth $ 7 billion and serves over 150 licensed customers in 14 countries.
Under the direction of CEO Wences Casares, Xapo primarily concentrated its activities around Bitcoin. Reportedly, he will now focus on retailing Bitcoin.
Coinbase’s Future Plans and surveillance activities
In addition, Coinbase plans to expand its surveillance business with other crypto assets and provide banking services. With the incorporation of Tezos and Algorand in Coinbase, it is planned to accelerate the staking activities.
Coinbase Custody CEO Sam McIngvale implied that a stream of income has begun from the borrowing and lending activities of assets held in custody. In the next phase of this move, Coinbase is expected to take the form of banking and other traditional financial services.
Coinbase CEO Brian Armstrong reiterated his views on adding more crypto to the Coinbase ecosystem in the past:
Surveillance is a critical step towards institutionalization of the crypto economy. It’s likely that he’s likely to start working – maybe a few billion in surveillance. However, we expect it to be a meaningful, stable and continuous source of income for the company quickly.