Crypto Firm BitGo To Provide Compliant Custody For Blockchain Capital’s Security Token

Announcements, News | March 20, 2019 By:

Blockchain security and crypto wallet firm BitGo has added support for Blockchain Capital’s BCAP ERC-20 token.

Blockchain Capital, which helps entrepreneurs build companies and projects based on blockchain, launched a tokenized investment fund in April 2017 and created the BCAP ERC-20 token, the blockchain industry’s very first security token. BCAP represents an indirect economic interest in the limited partnership interest in the tokenized investment fund, which invests in the digital assets and equity securities of some of the most recognized emerging companies building blockchain and digital asset platforms.

BCAP token holders benefit from exposure to the underlying assets of the tokenized investment fund. Token holders can trade their tokens on secondary trading platforms in a manner that is compliant with applicable securities regulations.

In its announcement, BitGo, which offers institutional cryptocurrency financial services, said that its clients will now be able to hold their BCAP assets using BitGo Trust Company, a qualified custodian that provides compliant custody for security tokens.

“We wanted to ensure that our custody solution for BCAP would be completely secure while easy to manage”, said Brad Stephens, Co-Founder and Managing Partner of Blockchain Capital. “When we compared custody offerings, BitGo’s solution was far ahead of the other options in both design and security, so we’re excited to partner with them.”

Ben Chan, Chief Technology Officer of BitGo, said that security tokens are an increasingly important asset class for institutional investors and BitGo is here to support them,

“As a qualified custodian, we recognize how critical compliance is for our clients and we’re pleased to be able to provide custody services that are compliant with securities regulations,” Chan said. “This is a major step forward for mainstream adoption.”