Global Custody of the Worlds Crypto Tokens set for a Huge Surprise

Richard M Adrian by Richard M Adrian - 02:22 PM Aug 17, 2019
Global Custody of the Worlds Crypto Tokens set for a Huge Surprise
Major Crypto Exchange Coinbase bought custody of Xapo- a firm with nearly $5.5 billion worth of Bitcoin assets. The estimated bitcoin amount as of now is 700 Bitcoins. Xapo is famous for stashing crypto holdings from rich clients in a secret swiss military bunker. Surprisingly, the bunker is located underneath a mountain.

Coinbase patted with a whopping $55 million to buy the custodial rights and now boost of USD 7 Billion worth of crypto assets under its management. A fortune blog post outlines that an outbidding war with Fidelity dragged Coinbase into the partnership deal with Xapo. Fidelity is an American investment services company.

5%  Custody


The Coinbase - Xapo deal could result to Coinbase having under custody more than 5% of the worlds Bitcoin reserve.According to several sources, Fidelity Digital Assets and Coinbase had been locked in a neck to neck race to outbid each other for the prized asset. Meanwhile, after several weeks, Coinbase prevailed and sealed an exclusive deal with Xapo. Since founding in 2012, Xapo has been able to raise more than $40 million. Fidelity’s goal in bridging crypto and traditional finance saw a Xapo Custody  in line with its core mission.

In fact, appointment of Tom Jessop as Fidelity’s Head of Corporate in 2018 indicates Fidelity’s vision to bridge crypto and traditional finance. Tom Jessop has an extensive background in blockchain startups. Unfortunately, Coinbase outwitted Fidelity in the sale, proving Coinbase vision in diversifying its revenue from the prevailing cryptocurrency trading

Conclusion


After the deal, Coinbase reports that it will store crypto for upto 120 clients from 14 different countries. Thereby, making Coinbase the largest institutional custodian in the world. According to the Fortune Report, Xapo explains that it will continue running the exchange business and Founder Wences Casares will still remain the Company’s Chief Executive Officer (CEO). 

 
About The Author
Richard M Adrian

Richard M AdrianBlockchain Analyst with a demonstrated history of working in the writing and editing industry. Skilled in WordPress, Editing, SEO Copywriting, Copy Editing, and Blog Marketing. When I am not writing, analyzing bulls/bears - I will be listening to music, reading a thrilling novella or hiking. Email me at Richardmadrian@gmail.com - And we could talk about anything - business or dragons.