Media Reports: Coinbase Crypto Exchange Plans Buying a Crypto Wallet Xapo

An anonymous source told The Block that an American exchange Coinbase is planning to buy Xapo company, which provides cryptocurrency storage services.

According to preliminary data, Xapo will be sold for $50 million, in addition, Coinbase will pay the company a percentage of income. According to experts, the deal will allow the trading platform to overtake the main competitor, Fidelity Digital Assets, in the custodial services market.

Xapo has developed a cold wallet for Bitcoin (BTC) cryptocurrency. Now about 700 thousand BTC coins are stored in it, 226 thousand of them belong to the investment fund Grayscale Bitcoin Trust. The firm does not charge for the storage of digital assets, it receives income only from over-the-counter trading.

Xapo wallet managed to attract funding in the amount of $40 million. Many famous companies invested in it:

  • crypto-investment firm Digital Currency Group;
  • Winklevoss Capital fund from the founders of the Gemini exchange;
  • venture Company Blockchain Capital.

Coinbase actively develops its business and expands its product line. Since its founding in 2012, the exchange has bought 14 firms, separately worth noting the Earn.com platform (renamed Coinbase Earn) and the analytical blockchain startup Neutrino.

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