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Coinbase Acquires Xapo for $55 M
Will Coinbase Become the "Walmart" of Cryptocurrencies?
San Francisco-based exchange Coinbase has enjoyed great popularity in the United States for years. They have developed and maintained a great reputation, except for a few minor slip-ups. The few mistakes they have made was the neutrino acquisition, which didn't have a lasting effect. Coinbase has become a hugely successful by maintaining high security protocols and fairness, for the most part.
The more successful a company tends to be, the more acquisitions and mergers will happen. Coinbase like other successful companies has no shortage.
Brian Armstrong, the CEO of Coinbase has announced the acquisition of Xapo on Twitter earlier. Xapo specialize in institutional custody of cryptocurrency for financial institutes and businesses. They have been in existence since 2014 and have more than 1.5 Million customers from around the globe. The scope of assets under Xapo's management is the equivalent of roughly $7 Billion.
The acquisition of Xapo will likely greatly increase Coinbase's market reach and future growth. It will likely be the "go-to" exchange of many on Wall Street and in financial organizations due to their New York BitLiscence. Essentially, Coinbase could become the most dominant exchange in the United States.
One of the few that could potentially challenge them, is Binance. The Maltese exchange Binance is launching its U.S. dedicated exchange in the next upcoming days. As long as it is not too restricted in comparison to their global version, Binance could potentially give Coinbase a proper competition.