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Coinbase confirms the purchase of Xapo Custodian, $ 7 billion worth of assets in the company’s storage facilities!

The custodial division of the largest US cryptocurrency company Coinbase has confirmed the purchase of the Xapo service. The deal is estimated at $ 55 million.

So, at the moment, Coinbase Custody stores digital assets worth more than $ 7 billion from 120 institutional clients from 14 countries. This makes the company the largest institutional custodian in the industry.

According to media reports, most Xapo customers agreed to transfer their assets to Coinbase – about 514,000 BTC, but some have not yet decided. If the company succeeds in convincing the others, then Coinbase Custody will have about 4% of the total issue of bitcoin.

It is noteworthy that recently the custodian BitGo joined the fight for Xapo customers, whose representatives promised the institutions a free 12-month depositary service.

It should be emphasized that Xapo will retain control over the retail business and the bunker in Switzerland, and this is about buying an institutional unit.

Recall that negotiations between the companies became known back in May. Then the potential deal was estimated at $ 50 million.

Startup Xapo was created in 2014 and was one of the first to offer simple and convenient bitcoin wallets. Its founder, Vinces Casares, is credited with popularizing Bitcoin among Silicon Valley executives.

The company also acquired a decommissioned military bunker dug in a granite mountain near the eastern shore of Lake Lucerne, where it housed one of the largest and most protected bitcoin repositories. At some point on the Xapo servers in the bunker, there could be 7% of all existing bitcoins.

Note that the Coinbase Custody division has been operating for a little over one year, and in May the value of assets in its vaults reached $ 1 billion.

Earlier, investment company Grayscale Investments announced the transfer of customer assets of $ 2.7 billion from Xapo to Coinbase Custody.

 

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