Coinbase in talks to buy provider Xapo bitcoin

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Coinbase Inc, is involved in the preliminary stage of negotiations over the acquisition of Xapo, one of the first companies providing services for the storage of Bitcoins, which managed to attract major venture capital in this area, reports the Block, citing its own anonymous sources.

Xapo was founded in 2012 and during this time the company has raised $40 million from venture capital investors, including Emergence, Blockchain Capital, Winklevoss Capital, AME Cloud Ventures, Endeavour Catalyst, Index Ventures Greylock Partners and others.

According to rumors, in 2019, the Xapo assets was approximately $5.5 billion, or almost 700,000 BTC in the store, and the company’s value is estimated at $50 million.

Interest in buying from competitors

Interest was also expressed by the company Fidelity Digital Assets. Fidelity has entered into the sphere of cryptocurrency in October, running the storage service and trade digital assets for institutional investors.

Coinbase already has an existing custodial service, Coinbase Custody, which was launched in August and is also designed for institutional investors. Storage of the crypto Finance is a third — party financial institution that takes customers ‘ securities for safekeeping to minimize the risk their theft or loss.

Xapo, for any company will be a strong incentive to expand their custodial services. Notably, Xapo does not charge a fee for the storage of customers ‘ funds and generates income by providing over-the-counter transactions for customers in Bitcoin in storage.

Coinbase was particularly busy expanding its activities in recent times. According to Crunchbase, from January 2018, Coinbase has made 10 acquisitions, the last of which was a startup Neutrino srl, purchased in February.

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Tags: Coinbase

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