Coinbase Acquires Xapo, Becomes World’s Largest Digital Asset Custodian | BTCMANAGER
Bitcoin, Blockchain & Cryptocurrency News
Now boasting a cumulative $7 billion in assets under custodial arrangements, the acquisition of Xapo has rendered Coinbase as the single largest cryptocurrency and digital asset custody company. The registry of clients exceeds 120 different institutions in 14 countries. Xapo has been pioneering crypto assets, along with BitGo, since 2014, making this acquisition all the more worthwhile, August 16, 2019.
Funding Inorganic Growth from Organic Revenue
Coinbase has the ability to generate billions of dollars in revenue from its current operations, and it has invested its profit from operations very intuitively to fuel its expansion.
The company has made 12 acquisitions, out of which 10 have been done in the last two years. The likes of earn.com, Neutrino, and Blockspring have been acquired by the company in the last year and a half.
Coinbase has positioned itself as the easiest on-ramp for Bitcoin and other cryptocurrencies since its inception in 2012. As they are devoid of the cyberpunk mentality most crypto enthusiasts develop, Coinbase is committed to stringent regulation and compliance with securities laws in every country they operate in.
This acquisition will focus on expanding their client base and improving customer experience for existing clients. Custody is moving beyond simple cold storage with growing popularity for the Proof of Stake (PoS) consensus mechanism. Staking, lending against holdings, and many other financial services are on Coinbase’s radar for future expansion.
By stationing themselves as a one stop solution for institutions with a global OTC desk and custodial services,