“Fundamentally, we have to help our investors earn a return on their assets. You can imagine lending out bitcoin and earning interest on that,” said Sam McIngvale, Coinbase’s CEO.
Most of Xapo’s biggest clients have already decided to move their crypto assets to Coinbase, according to Coin Desk. Coinbase will now store more than 514K bitcoins for Xapo’s customers. As more of Xapo’s customers go aboard Coinbase, it is estimated that its custody service will have more than 860K bitcoins under custody, amounting to over $8B.
“In choosing Coinbase, we are confident that the Institutional Custody Business is going to a company that can provide great insurance, borrowing and investment alternatives,” said Xapo’s founder and CEO Wences Casares. “We believe that Coinbase will take this opportunity to prove to our customers that they deserve their business.”
Read more on Coin Desk.