Report: Coinbase Negotiates Acquisition of Xapo’s Bitcoin Custody Business

Xapo reportedly holds $5.5 billion in assets under custody.Earlier this month, Cointelegraph reported that Coinbase CEO Brian Armstrong said that Coinbase Custody managed to get $1 billion in assets under management in just 12 months after its launch.

He also mentioned that 70 institutions signed up to the service during that period.Coinbase officially launched its custody service for institutional investors in July of last year.

At the time, the company revealed that it would enable its new institutional clients “to participate in the crypto ecosystem through proof of stake and distributed governance.” The company’s custody offering was set to be secured through a compliant and FINRA-member independent broker-dealer, Electronic Transaction Clearing (ETC).This week, Coinbase made a massive expansion of USD Coin (USDC) trading to customers in 85 countries.

Along with the USDC announcement, Coinbase also revealed a major global expansion, adding 50 more jurisdictions to its coverage, including such countries as Brazil, South Africa and Taiwan, among others.