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Reports: Coinbase May Acquire Crypto Wallet Provider To Boost Crypto Custody Services

Coinbase, ever expanding and adding new tokens, may be acquiring the cryptocurrency wallet provider and custody service, Xapo, The Block reports. Sources close to the Block said that the deal was yet to be finalized.

The acquisition will occur at a cost of $50 million in cash, and a “contingent earn-out” for remaining with the company, with the intention of boosting Coinbase’s custody service. According to the report, both Coinbase and institutional investment aiming firm Fidelity Digital Assets have been vying for the acquisition.

The report reads,

According to sources, Coinbase and Fidelity Digital Assets have been locked in a neck-and-neck race for the prized asset for the past few weeks, with Coinbase ultimately prevailing. If the tentative terms being discussed hold, Coinbase will pay ~$50 million in cash for Xapo, plus a contingent earn-out for remaining with the company. Xapo raised $40 million since its founding in 2012.

Xapo provides both a cold wallet and Bitcoin debit cards and was founded by Wences Casares, who has long been a supporter of Bitcoin. It has been backed by the likes of Winklevoss Capital, Blockchain Capital, and Greylock Partners.

Abhimanyu Krishnan

Abhimanyu is an engineer on paper but a writer by living. To him, the most celebratory aspect of blockchain technology is its democratic nature. While he’s hodling, he can be found reading a good book or making the local dogs howl with the sound of his guitar playing.

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