Cryptocurrency exchange Coinbase has acquired Xapo, the secure Bitcoin storage startup.
Xapo was founded in 2014 with the ambition to make owning cryptocurrencies safer. Since then the company has raised over $40m and become a founding member of the Libra Association, Facebook’s cryptocurrency project. The project has recently faced pressure from international authorities asking for increased transparency regarding the project.
Coinbase has pledged to keep building on Xapo’s legacy of making owning Bitcoin safer and to keep being customer-focused.
The announcement comes after a period of growth for Coinbase. Since last year when it launched Coinbase Custody, the institutional asset custody platform, the platform has grown to keep over $7bn in assets under custody.
More recently, Coinbase has faced speculations about banking problems in the UK. In mid-August, Barclays and the company were reported to have ended their partnership.
However, it was unclear why that was, with some sources citing the bank had gotten cold feet about cryptocurrencies whilst other stated it was because the partnership had been a part of a pilot project that had now run its course.
Following the news, it was rumoured online that Santander had also ended its relationship with Coinbase. However, FinTech Global spoke with the bank and found out that it denied blocking payments to Coinbase.
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