Coinbase Custody: Institutional investors investing $200-400 million per week in Cryptocurrency
The largest exchange in the U.S, Coinbase, is seeing an influx of institutional money in their cryptocurrency custody service. According to CEO Brian Armstrong, Coinbase Custody sees $200-400 million being invested in Bitcoin and other cryptocurrencies in a week.
Whether institutions were going to adopt crypto or not was an open question about 12 months ago. I think it's safe to say we now know the answer. We're seeing $200-400M a week in new crypto deposits come in from institutional customers.
— Brian Armstrong (@brian_armstrong) August 16, 2019
Started in July 2018, Coinbase custody has now become one of the largest custody services in the entire world. Coinbase Custody holds $7 billion worth AUC (Assets Under Custody) for more than 120 clients from 14 different countries. The goal of Coinbase Custody was to provide a safe way for institutional investors to invest in Bitcoins.
Coinbase acquires Xapo
Coinbase announced the acquisition of Xapo’s institutional business. The news was announced on the Coinbase blog.
Xapo is a New York-based cryptocurrency digital wallet and service provider. Xapo was started in 2014, with the goal of promoting Bitcoin around the world. Xapo is one of the few companies to hold New York’s Bit License.
All of Xapo’s existing institutional clients will be shifted to Coinbase Custody. According to Xapo, at the time of sale, they had 1.5 million customers. The price of sale hasn’t been revealed.
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