Xapo, one of the earliest Bitcoin custodians, will discontinue its US operations as of March 1, 2021. Customers have been asked to transfer their funds to an external Bitcoin address.
Why is Xapo discontinuing US operations?
Explaining its decision, the company in a letter to customers referred to a change in global business strategy.
Xapo founder Vences Casares emphasized that the target customers of the service are people with savings of $30,000 but less than $1 million, mainly in emerging markets.
“Serving the US market will take quite a lot of effort, time and investment, it will require a separate organization within Xapo to support it, and it will still provide a worse product than what we can offer internationally,” added Casares.
Xapo is now asking customers to transfer their BTC holdings to an external address. Buying and receiving bitcoin within the app has also been disabled.
Recall that last year, the custodian division of the largest American cryptocurrency company Coinbase acquired Xapo. Although the exchange did not post any figures in the official announcement, the deal was sealed at $55 million, according to Fortune.
Xapo has also been one of the earliest participants in the Facebook-led libra initiative, which became the stablecoin project rebranded Diem.