India, Aug. 16 -- Coinbase Custody, the U.S.-based crypto exchange Coinbase's crypto custody service for institutional investors, acquired crypto wallet provider Xapo's institutional custody business.

The transaction value was not disclosed by Coinbase. But Fortune, quoting a person familiar with the matter, said Coinbase paid $55 million, higher than what Fidelity had proposed.

The acquisition has grown Coinbase Custody's Assets Under Custody (AUC) to over $7 billion in Bitcoin (BTC) and crypto assets, which is stored on behalf of more than 120 clients in 14 different countries. In May, AUC had crossed only the $1 billion mark.

Coinbase Custody, which launched its cryptocurrency custody service for institutional investors in July 2018...