Report: Coinbase Negotiates Acquisition of Xapo’s Bitcoin Custody Business
Ana Alexandre's original article for cointelegraph.com reduced by 59%
American major cryptocurrency exchange Coinbase is reportedly negotiating the acquisition of the bitcoin custody business of cryptocurrency wallet provider Xapo, technology-focused media outlet the Block reported on May 16. Sources familiar with the matter reportedly told the Block that Coinbase has been vying with the digital currency wing of United States financial services giant Fidelity, Fidelity Digital Assets, for Xapo over the past several weeks to advance its custody business. Following the closure of the deal, Coinbase will reportedly pay about $50 million in cash to Xapo, with a contingent earn-out for remaining with the company.
Xapo reportedly holds $5.5 billion in assets under custody. Earlier this month, Cointelegraph reported that Coinbase CEO Brian Armstrong said that Coinbase Custody managed to get $1 billion in assets under management in just 12 months after its launch. Coinbase officially launched its custody service for institutional investors in July of last year.
Along with the USDC announcement, Coinbase also revealed a major global expansion, adding 50 more jurisdictions to its coverage, including such countries as Brazil, South Africa and Taiwan, among others.
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Summarised crypto news.