Institutions Clamor For Bitcoin: Crypto Giant Coinbase May Acquire Xapo

This news has been divulged as data indicates that institutions are looking to siphon capital into the crypto asset space, thereby making custodians a necessity.Related Reading: Prominent Analyst: Trouble for Bitcoin if Price Corrects Below $7,500Coinbase & Fidelity Duke It Out Over XapoReported by The Block on Thursday morning, the San Francisco-based cryptocurrency giant Coinbase is “in advanced talks” to purchase Xapo, a Zurich-headquartered custodian that purportedly owns at least 5% of all BTC in circulation, worth billions of dollars.

So far, as hinted at, Coinbase has the lead and was quicker on the draw, as the budding startup looks to bolster its embryonic custody business in a renewed drive to appeal to institutional players.Related Reading: Here’s Why the Bitcoin Price May Not See a Big Correction At AllThis news comes after Coinbase has revealed that it really intends to delve into custody, citing growing interest from its institutional clients and contacts.

Speaking at Consensus, Brian Armstrong, the technologist-turned-chief executive of Coinbase, revealed that his firm’s custodian crossed $1 billion worth of assets under management (AUM) this week, which was sourced from 70 institutions.

In a similar fashion, the Digital Currency Group’s subsidiary Grayscale was revealed Monday to have seen its flagship product, its Bitcoin Trust, post $141 million in volume today on markets.And Fidelity Investments revealed that institutions are widely amicable towards the digital asset class.