Blockchain Security Firm BitGo To Build Own Digital Asset Custodianbr>
Blockchain firm BitGo is building a custodial platform that will be specifically designed for cryptocurrencies.
Founded in 2013, BitGo is a blockchain software company that secures cryptocurrency for institutional investors. It offers an enterprise-grade, multi-sig, multi-user bitcoin wallet, as well as API access to its underlying security platform. The company claims that its customers, which include the world’s largest cryptocurrency exchanges and financial institutions, conduct more than $10 billion in transactions monthly.
Earlier this year, BitGo announced that it entered into a definitive agreement to acquire Kingdom Trust, an independent qualified custodian regulated by the South Dakota Division of Banking, to provide a complete and independent qualified custodial offering for cryptocurrencies.
However, in a blog post Friday, BitGo said that instead of acquiring Kingdom Trust it would rather build its own custodial platform. The company is currently seeking a charter to build the custodial platform.
“Over the last few months, we have worked closely with customers to understand their custodial needs and have realized that to offer the best custodial solution, we needed to build our own qualified custodial offering,” said Robin Verderosa, Product Marketing at BitGo. “As a result, we have decided not to move forward with the acquisition of Kingdom Trust.”
The company currently offers multiple options for custody, from self-custody to full custody at BitGo. The qualified custodial solution, dubbed BitGo Trust, will seek to expand the offering with a regulated, qualified custodial product for US investors. It will be specifically designed to hold digital assets for institutional investors independent of any exchange or trading activities.
“Our vision is to build a new, regulated, qualified custodian that will be the first and only one built from the ground up for digital assets,” said Verderosa. “Financial markets and past crises have demonstrated the need for custodianship of assets by an independent custodian. This is an essential piece of the modern market infrastructure that the crypto world desperately needs.”