The San Francisco-based digital currency exchange announced on August 15 that it had acquired the cryptocurrency custody service support institutional branch. This move by Coinbase made it step into the spotlight and has ever since been in the limelight as the largest custodial service for digital assets worldwide. It currently boasts of more than USD 7 billion under custody.
As early as 2010, bitcoin supporters such as Hal Finney predicted that someday, most BTC transactions would occur between massive bitcoin-backed Banks. This belief by Finney was that if a digital currency like bitcoin were to gain mass adoption, the network would not be able to include every single financial transaction in the world. The renowned cryptographer said that large bitcoin-backed banks fulfill the void and “work as banks did before the nationalization of currency. “As of present, current firms like Coinbase are holding massive amounts of digital assets in custody.
On Thursday the California exchange announced that it had acquired Xappo’s institutional crypto operation thus establishing itself as one of the largest crypto custodians worldwide. Coinbase published a blog post that read in part” in just one year since launch Coinbase custody has grown to over US dollars 7 billion in assets under custody (AUC) stored on behalf of more than 120 clients in 14 different countries making it the largest most globally recognized and most trusted institutional custodian in the world. “
The company was formed by Brian Armstrong and Fred Assam in 2012. During that year, it allowed its users to buy and sell BTC using a bank transfer and thus became one of the biggest BTC providers next to Mt. Gox. It’s potential quickly rose through the years 2012 and 2013 as investors and venture capitalists started seeing the prospects in the company and began to invest massively. Its users grew to more than 1 million accounts, and the assets under the company’s control continue to grow exponentially from there.
The cryptocurrency community observed how large codebase had grown over two years later when in February 2016, Brian Armstrong told the public that Coinbase was now storing about 10% of all Bitcoin in circulation. As of current Coinbase is currently valued at over US dollar 8 billion. Despite all the competition, in the year 2019, the San Francisco tech company is estimated to have a revenue of between US dollar 569 to 650 million. Close to Coinbase is Binance, with the block reporting in February the exchange had US dollar 446 million in profits. Kraken captured USD 150 million annually with Bitstamp, Bitfinex, and Itbit following thereafter. Coinbase currently has 800 employees, and the firm has made about ten acquisitions since its Inception.