Xapo, one of the oldest Bitcoin custodial services, is wrapping up its services in the United States from March 1, according to a report by Coindesk.
The company is sending emails to its American clients informing them about the closure and requesting them to withdraw their funds from Xapo wallets. It has already suspended Bitcoin purchasing and receiving services for US clients.
“Due to a change in our global business strategy, Xapo, Inc. is leaving the U.S. market and will be closing all U.S. customer Xapo accounts. As a result, we’ll need you to transfer your funds to an external Bitcoin address,” the email read.
From Custodian to Digital Banker
The report also outlined that the company is pivoting from its custodian business to offer digital banking services.
Xapo’s Founder and CEO, Wences Casares, confirmed the shift of focus in its business and revealed that the company will now target clients in emerging countries. It is focusing on clients with savings between $30,000 and $1 million, who want to hold their money in foreign currencies but do not have access to private banking services.
The decision to move out of the US is justified, given that the high bar of providing private banking services in the country. Xapo already has a banking license in Gibraltar.
Headquartered in Switzerland, Xapo is an original member of the Facebook-led Diem Association, previously known as the Libra Association. While many early members left the digital currency project, it kept its support for it.
Furthermore, Xapo made headlines when it sold its institutional business to Coinbase last year for $55 million. However, the company is facing a lawsuit in the US for allowing the storage of stolen Bitcoins.