Coinbase, the US-based bitcoin exchange company, has announced that its Coinbase Custody division has completed an acquisition of the institutional business of New York DFS-regulated and Gibraltar-licensed E-money institution, Xapo.

Over one year since launch (November 2017), Coinbase Custody has grown to over $7 billion in Assets Under Custody (AUC) stored on behalf of more than 120 clients in 14 different countries. This deal makes it the largest institutional custodian for bitcoin and blockchain assets in the world.

A Fortune article published revealed that the purchase was made for $55 million.

โ€œFrom the start, our goal has been to build a trusted foundation for institutional investment in bitcoin (BTC) and crypto assets in general. Weโ€™re thrilled to help enable some of the tremendous demand for this emerging asset class.โ€
โ€“ The Coinbase Custody Team

Xapo has long been a pioneer in the storage of bitcoin, leading the industry in the creation of security techniques that have kept its customersโ€™ cryptocurrency safe since 2014. Xapo was founded with the mission of making Bitcoin more secure and accessible.