BitGo Warns About Xapo Customers Expressing Worry Regarding The Latest Coinbase Custody Deal
At the beginning of the month, BitcoinExchangeGuide reported about Grayscale Investments entering into agreements with Coinbase Custody to serve as its Custodian, effective July 29, 2019.
Grayscale joined a roster of world-class institutions that have chosen to partner with Coinbase Custody, including leading crypto funds like Polychain Capital, Autonomous Partners, a16z crypto, and many more.
There were rumors surrounding the potential acquisition of Xapo by Coinbase since May 2019. The cause of it was the company trying to add other assets but without having to increase their own prices. Even though there are some people who have criticized this decision, the service is has been clear about maintaining customer security as a priority.
Earlier today, Yogita Khatri of the Block Crypto reported that rivals BitGo has warned about Xapo customers who vary about the deal.
Xapo’s clients were being transferred to Coinbase. BitGo acknowledges that rival crypto custodian Xapo built a great business because they were a serious custodian that understood their responsibilities to their clients. In the blog post, they go on to say,
“The clients calling us are concerned about the safety of their digital assets and we want to make sure they have a choice. That’s why we’re announcing that through the end of September, qualifying clients can custody their assets with BitGo Trust, the first qualified custodian purpose-built for digital assets with no custody fees for the next year.”
BitGo’s CEO Mike Belshe told The Block Crypto earlier that competition has chances to be eliminated. He said that he doesn’t believe that it's driving it to have very low prices. Although BitGo says that their motives are altruistic saying;
“Our focus is being a great custodian. That means offering the best client service and most secure protections for digital assets because it benefits the entire ecosystem.”