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Coinbase has taken its assets under custody to $7 billion by buying the institutional business of Xapo for a reported $55 million.

The deal makes Coinbase Custody, which is only a year old, the world’s largest crypto custodian, storing more than $7 billion worth of assets for more than 120 clients in 14 countries.

Launched in 2013, Xapo stores crypto assets for clients in a vault under a Swiss mountain that is reportedly protected by armed guards.

The firm will keep running its retail Bitcoin exchange but has decided to cash in on its custody business, with Coinbase beating off competition from Fidelity, according to Fortune.

Xapo’s biggest clients have agreed to transfer their assets - more than half a million Bitcoins - to Coinbase, says Fortune, citing a source.

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