Coingape - 9/14/2018 8:03:31 AM - GMT (+0 )
BitGo Trust Company has gotten approval from the US authorities to be the qualified custodian for Bitcoin, Ethereum, XRP and 72 other cryptocurrencies for the institutional investors.BitGo: Only qualified custodian purpose-built for cryptocurrencies
Another good news has entered the crypto market in the form of BitGo announcing the approval grant from the US authorities for the crypto custodian services. Palo Alto-based BitGo is a blockchain security company that provides multi-signature and multi-coin wallets.
According to the official announcement, the South Dakota Division of Banking has approved the BitGo Trust Company as the public South Dakota Trust Company. This is basically the first qualified custodian that is built for storing the digital assets.
Through its institutional-grade and multi-signature security, BitGo will be delivering modern security for the nascent cryptocurrency industry. Mike Belshe, the CEO Of BitGo shares what exactly they are providing in terms of this offering:
“Custody has been the missing piece of cryptocurrency market infrastructure and this gap has kept institutional investors out of the market. Traditional custodians don’t have experience handling cryptocurrency. Exchanges that double as custodians present a conflict of interest and raise regulatory concerns. BitGo Trust Company is a qualified custodian, and therefore the only custody offering that delivers the highest levels of both security and regulatory compliance.”
BitGo Custody is all set to attract the institutional investors into the crypto realm who were reluctant to enter this market due to the absence of a custody solution like in the traditional market. Acting as the qualified custodian, BitGo will provide stringent procedures, policies, disclosures, and controls.
BitGo Custody solution involves a number of facets:
- 100% cold storage technology in bank-grade Class III vaults
- Support for 75+ coins and tokens
- Institutional-grade policy controls
- Multi-user accounts
- Fast onboarding
- 24/7 support
The full list of coins supported by BitGo is:
As for the pricing part, the official announcement puts,
“BitGo Custody offers low setup and assets under custody (AUC) fees. After a year, clients may be eligible for a fee credit if their AUC balance is equal to or greater than it was during the prior 12-month period.”
The company offers an online hot wallet solution along with a custodial one which is a combination of a hot and cold wallet but it is not regulated like the Trust, as explained by Shahla Ali, the Chief Compliance and legal Officer who further stated:
“The trust company will enable us to offer a qualified custodial offering that is regulated, that has the money laundering and know your customer requirements. Our custodian offering already has money laundering and KYC requirements … [but the Trust is] for institutional clients … especially for those who are registered advisors and broker-dealers.”
BitGo has been a part of this market for a long time i.e. since 2013 and has been catering to the institutional investors and has now further taken one step forward with its custody solution.
Apparently, it is also “world’s largest processor of on-chain bitcoin transactions” along with $15 billion per month across all cryptos. A few months back in July, the company also went through an audit from Deloitte.
Looks like in the near future institution involved in the crypto market is going to explode with the way giants from the traditional finance market and custody solutions are invading the crypto space.