British banking giant Barclays has reportedly cut ties with United States crypto exchange Coinbase.
As Coindesk reported on Aug. 13, unnamed industry sources have said that Barclays will no longer be banking for Coinbase, severing a relationship that began when Coinbase opened a Barclays account in March 2018.
The news is expected to hit the crypto community hard, as, in addition to linking a major crypto exchange with a heavy hitter among the traditional banking establishment, the break may end Coindesk users’ access to the United Kingdom’s Faster Payments Scheme and slow the exchange of cryptocurrencies for British pounds sterling dramatically.
The precise reason for the split is unknown, but one anonymous source speculated to Coindesk that:
“It is my understanding that Barclays’ risk appetite has contracted a little — I’m not sure exactly why or what’s been driving that, maybe there has been some activity they are not happy with. But it’s about Barclays’ comfort level with crypto as a whole.”
Reportedly, Coinbase will continue its access to UK banking through Clearbank, a younger and less established operation.
This is not the first time that Barclays has taken a step back from increasing involvement in the crypto sphere. In August of 2018, the bank began official denials that it was opening a crypto trading desk in light of two employees removing information about work on digital assets from their respective LinkedIn profiles.
Coinbase, for its part, does not seem to have suffered greatly in recent months. This July, it came out that the exchange had registered eight million new users in the preceding year.
Also in July, Cointelegraph reported that Coinbase’s CEO Brian Armstrong was looking to take the exchange beyond trading, expressing plans to expand Coinbase into wider promotion of crypto adoption.
Cointelegraph reached out to Coinbase for comments but did not receive a response by press time.
DAI is now a Supported Asset on the Coinbase Card
Coinbase continues to explore its options in the cryptocurrency space. That also includes adding support for digital assets in any way possible.
As far as the Coinbase Card is concerned, it has now received DAI stablecoin functionality.
A DIFFERENT ASSET FOR THE COINBASE CARD
It is the first time any stablecoin is supported on this payment card issued by the popular company.
One could argue there are far more popular coins on the market, such as Tether’s USDT.
However, that currency is not suited for the Coinbase card for a variety of reasons.
The main reason being how it is not supported by Coinbase or any of its platforms and services right now.
In the blog post, the company explains DAI is an alternative for those who want to spend digital assets without much volatility.
As is the case with stablecoins, they are designed to always maintain their peg to the US Dollar.
Especially now that Christmas shopping is on the horizon, this stablecoin support can be rather interesting to explore among Coinbase Card holders.
It is interesting to note how this card has supported for a fair few digital assets right now.
One has to wonder if other crypto debit cards will receive stablecoin support as well in the future.
This development creates a very intriguing precedent for the cryptocurrency industry as a whole.
Coinbase has over $ 7 billion worth of Bitcoin (BTC) within its custody
- The cryptocurrency exchange Coinbase, is reported to have some $ 7 billion worth of Bitcoin in its custody.
- It was reported that many users trust the exchange given its extensive measures of security.
Data has been gathered and shared by crypto portfolio monitor BitUniverse, finding that Coinbase has a large holding of Bitcoin within its custody.
As per its reports, they detail that Coinbase has a nine hundred and sixty-six thousand two hundred and thirty Bitcoin, which is worth well over seven billion US dollars ($7 billion), in its custody.
It was also suggested that many users are comfortable with Coinbase, due to its extensive security measures. Besides safeguarding user funds with insurance and conforming to various laws and regulatory standards set by the US financial regulatory system, it goes to great lengths to incorporate multiple layers of security filters to ward off potential cyber-attacks.
Coinbase leads the pack as the most active acquirer: Report
One of the world’s leading cryptocurrency exchanges, Coinbase, with 16 acquisitions, is the most active dealmaker in the space. This was confirmed by a research report titled ‘Barbarians on the Blockchain’ by crypto-data and research platform, TokenData, which found that Coinbase is the powerhouse of mergers and acquisitions [M&A].
Coinbase’s M&A strategy mainly consists of “acquihires and technology tuck-ins,” it said. Additionally, the platform has also engaged in two significant acquisitions such as Earn, which is worth $100 million, and Xapo’s custody business which is worth $55 million. TokenData tweeted,
“Trading is crypto’s first killer-app providing big exchanges with cash and networks to engage in acquisitions. Unsurprisingly, Coinbase [16 deals ] leads the pack and engages in all types of deals [industry consolidation, regulatory plays, talent].”
Following Coinbase’s suit is San Francisco-based Kraken and Canada-based Coinsquare with 7 and 5 deals, respectively. Kraken recently acquired the $100 million-worth Cryptofacilities, a regulated cryptocurrency derivatives exchange based in the UK.
Binance, on the other hand, has engaged in only three public acquisitions; the latest one being Mumbai-based WazirX.
Within TokenData’s research, another interesting point worth noting is that it estimated a total deal value of $4 billion since 2013, with $2.8 billion of M&A activity recorded in 2018 and $700 million in 2019. While the figures seem impressive, this is small, when compared to the total network valuation of cryptocurrency networks which is worth over $200 billion and the M&A value of other tech sectors, which is understandable because not many platforms are over 5 years old.
Additionally, investment funds and cryptocurrency exchanges are the most active acquirers that jointly represent more than half of all deal activity and deal value, according to the study. Moreover, cryptocurrency exchanges have leveraged increasing prices, positive market sentiment, and annualized volatility above 100%, providing each of these platforms the necessary cash reserves and networks to engage in acquisitions.