Coinbase is an online platform that allows merchants which are both consumers and traders to transact with digital currency (bitcoin and other forms). This platform allows users to create their own bitcoin wallets which makes it easy for them to buy or sell bitcoins by connecting to bank accounts.
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Coinbase Launch Open Financial System
Coinbase was launched in 2012 with a mission to create an open financial system for the world. Before Axios delve into why Coinbase plans to buy Xapo’s bitcoin custody unit, it is also important to know a little about Xapo. Xapo is a Hong Kong-based company that uses offline servers that are never linked to the internet which of course makes it superior to other web-based wallet systems. This company also supports a prepaid debit card system that is compatible with POS systems.
Bitcoin News Today – Why does Coinbase want to buy Xapo’s Bitcoin custody unit?
The above brings us to the heading of this write up “why does Coinbase want to buy Xapo’s bitcoin custody unit?” if this deal is successful, it would cost USD 5.5 billion. This deal is in a bid to boost its custody business. Coinbase has a very strong competitor, Fidelity Digital Assets which have also competed for the Xapo deal. These two companies have been in fierce competition for a few weeks. This deal aims to add 700000 Bitcoin which empowers it to gain more customers. And also boost trades with investors who make custody a requirement.
Coinbase Help to Store Funds
This deal will also help investors that have not connected to the internet store their funds. Xapo boasts of a secure vault that has housed in high-security installations, including deep within a decommissioned Swiss military bunker. And that offers very robust protection against theft.
In conclusion, Coinbase is looking earnestly for new ways to expand its frontiers and like every business that seeks immense, it knows to look towards acquisition. This deal will indeed help Coinbase be a force to reckon with in the digital currency market.
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