Coinbase acquires XAPO’s institutional business

Major crypto exchange Coinbase announced on 16th August about its acquisition of Hong Kong-based XAPO’s institutional business and also crossing 7 billion U.S dollars under asset valuation. 

Coinbase commenced the blog stating that they would seek to accomplish XAPO’s goal of making Bitcoin more secure and accessible to users. 

With regards to the development, Coinbase added – 

 “Like Xapo, we share the goal of making Bitcoin and other cryptocurrencies accessible in a way that’s secure, safe, and compliant with local laws. Through the acquisition of Xapo’s institutional businesses, we’re now proud to act not only as the gateway for millions of people to cryptocurrency but also as the world’s largest and most trusted steward of digital assets. Xapo has been a tremendous flagbearer for Bitcoin and the economic equality it can offer to billions across the globe. We’re honored to carry this flag onward.”

Furthermore, Coinbase is also inviting all XAPO users to its exchange platform. The exchange platform asserted to serve a wide range of institutional clients including hedge funds, family offices, endowments, and proprietary trading desks as they decide to opt crypto. 

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With a primary focus on clients, Coinbase plans on assisting them with a secure and accessible system to exchange cryptocurrency. The exchange firm stated that they are open to the idea of exploring new ways to leverage crypto assets like staking, borrowing against crypto portfolios, and lending crypto to trusted counterparties. 

Since its inception, XAPO has aimed to make Bitcoin more secure and accessible to users. The Hong Kong-based company offers users a multi-currency wallet and card that operates on a global level.

As a centralized exchange platform, Coinbase provides a secure and accessible system which makes it one of the most trusted exchanges in the market. By having XAPO onboard, Coinbase aims to build more confidence among users towards the exchange system. 

On 8th August 2019, Coinbase appointed two new members to the board of Coinbase Custody trust company; New York bank regulatory veterans Richard Neiman and Robert Easton were the latest additions to the board. According to Coinbase, the addition of the two veterans will help the custody for its further development as it is regulated by the New York Department of Financial Services (NYDFS).