Coinbase became the custodian of the industry’s largest cryptocurrency assets (equivalent to about $ 7 billion) through the acquisition of Xapo’s institutional asset management service, which provides trading services for general investors Was revealed on the official blog published on the 15th of this month.
Tadashi coin base that is known for providing virtual currency services that focus on system compliance and security, seems to have acquired in the $ 55 million the Xapo company institutional asset management services.
Also, according to company CEO Brian Armstrong, institutional investors who were cautious about cryptocurrency investments last year have also seen a change.
No.1 custodian in the virtual currency industry
According to Fortune reports, Xapo, which was recently acquired by Coinbase, was considering investing in an asset management service for institutional investors in order to concentrate on trading services for general investors.
Xapo CEO Wences Casares, known as a Bitcoin bullish, said:
It is difficult to make the consumer business successful at the same time as the corporate business. Since the beginning of this year, we have been looking for a (new corporate business) home.
According to Casares, several companies, including Grayscale Investment, were interested in acquiring the company’s business, but the only company that had security or regulatory qualifications accepted by Xapo customers was coin-based.
Coinbase Custody, developed by Coinbase in July 2018, is an asset management service that solves the security problem of digital asset management, which has been the biggest concern for institutional investors in cryptocurrency investment.
The service has gradually established its customer base since launch, and reportedly managed about $ 1 billion worth of cryptocurrency assets as of April this year.
Coinbase, which has become the custodian of the industry’s largest asset management with the successful acquisition of Xapo, is currently managing more than $ 7 billion.
Coin-based CEO Armstrong, who tweeted “I am thrilled to inherit the torch of Xapo” after this announcement, said the industry ’s infrastructure building for institutional investors is “towards the crypto economy. “It ’s the first step.”
In addition, while research results have been reported that institutional investors’ market entry is the driving force of the bullish market this summer, he also led institutional investor money to the market, who led the coin base to the largest custodian I pointed out that it was inflowing.
Pay attention to Xapo’s future efforts to focus on coin bases that attract more institutional investors to the cryptocurrency market and businesses for general investors in South American markets such as Argentina.