Without a doubt Coinbase is one of the most popular crypto exchanges around the globe, with many crypto traders starting out on the Coinbase platform. However, as Coinbase grows and more large funds choose to use Coinbase’s custodial solution for long-term crypto hodling, it becomes more and more of a target for hackers. So, in a bid to remain safe and secure, Coinbase has turned its attention to acquiring Xapo – the most secure cold storage company in the world.
Next Level Security
If you think you have a safe custodial solution or you think your crypto is the safest locked away on a bit of paper – you’re going to be blown away by Xapo. Xapo hides its crypto deep inside an old Swiss bunker that’s buried deep inside a granite mountain. The vault is also surrounded by reinforced concrete, iron gates and state-of-the-art 24/7 satellite security systems. Xapo is popular with Bitcoin whales thanks to these impressive security features, and there is no way funds will go missing from this vault. In October last year, hackers managed to gain access to Trade.io’s cold wallets that were kept in a bank vault. There is no chance of that happening with Xapo.
Looking to Become More Secure
After the debacle where Binance was hacked – losing more than 7,000 Bitcoin in the process – it stands to reason that Coinbase is starting to take security very seriously. Back in April, Coinbase implemented bcrypt on all login boxes to further secure user credentials and protect from surfing attacks. This new passion for security follows a plethora of attacks on other major exchanges. If Coinbase suffers an attack, there is a good chance it will lose a lot of its big-name clients – including Greyscale.
Fidelity in the Running
Coinbase isn’t alone in the hunt for Xapo – Fidelity is also after the cold storage company. Fidelity is about to open up its Bitcoin trading to institutional clients in the coming weeks and to help secure these funds as much as possible, it’s after its own custodial solution. Acquiring the most secure custodial solution in the world would cement Fidelity as the top crypto trading platform for traditional investors. It would also go a long way towards attracting this money into the crypto world.
Coinbase looks to be the frontrunner in the chase for Xapo, and it will certainly help the exchange gain more trust from bigger traders. It’s likely hoping that the huge Bitcoin whales that currently use Xapo will start using its services. If so, Coinbase could quickly shoot up the trade volume rankings should these whales start being more active.