Bitcoin custodian Xapo to cease operations in the United States

The Xapo custody service will cease serving US clients as of March 1, CoinDesk reports.

In explaining its decision, the company, in a letter to clients, cited a change in its global business strategy.

The founder Wences Casares stressed that the service’s target clients are people with savings of between $30,000 and $1 million, primarily in developing markets.

“Serving the US market will require quite a lot of effort, time and investment; to support it, a separate organisation within Xapo would be required, and it would still yield a worse product than what we can offer internationally,” added Casares.

Last year, Coinbase, the largest American cryptocurrency company, acquired Xapo’s custody unit. The deal was reportedly worth $55 million.

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