Source: CoinDesk
Summary
Coinbase, a digital currency exchange, has acquired Xapo’s asset operations for $100 million. The acquisition includes Xapo’s digital asset custody business and its regulatory licenses. The deal is expected to expand Coinbase’s offerings and increase its presence in the cryptocurrency market. According to the announcement, the acquisition will allow Coinbase to provide more comprehensive services to its clients. The deal is subject to regulatory approval and is expected to close in the second quarter of 2023.
Our Reading
The announcement sounds ambitious.
Coinbase is buying Xapo’s asset operations for $100 million, a move that will supposedly expand its offerings and increase its presence in the cryptocurrency market. Because, you know, the industry hasn’t already been saturated with similar services. The acquisition includes Xapo’s digital asset custody business and regulatory licenses, because who doesn’t need a little more bureaucracy in their cryptocurrency dealings? The deal is expected to close in the second quarter of 2023, just in time for the next hype cycle.
It’s not like Coinbase didn’t already have a digital asset custody business or regulatory licenses of its own. But hey, why not double down on a concept that’s already been done to death? The announcement promises that the acquisition will allow Coinbase to provide more comprehensive services to its clients, but we’ll believe it when we see it.
Original observation: This is just another iteration of the same old “new” feature that users have already had for years.
Author: Evan Null
