Coinbase has sealed the acquisition of Xapo’s institutional custody service for $55 million
Coinbase has acquired Xapo's institutional custody business for $55 million, completing a deal that The Block first reported was ongoing in May.
Xapo will continue to retain some of its businesses including its retail-facing exchange business and a Switzerland-based bitcoin vault. With the acquisition, the exchange now has over $7 billion in digital assets under custody, per a company blog post.
"From the start, we set out to build the world's safest and most trusted institutional-grade custodian and today is an important milestone on that journey," Sam McIngvale, CEO of Coinbase Custody, says in a statement.
According to a Fortune report, the majority of Xapo's largest clients have agreed to transfer their funds over to Coinbase, bringing over 514,000 BTC under Coinbase's control.