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.
Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news and polls.