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With the ever-evolving digital finance industry, BitGo Holdings, Inc., is keen on solidifying its foothold by taking over Prime Core Technologies, Inc., the holding company of Prime Trust. BitGo's recent announcement underpins its quest to foster business resilience, secure services, and lasting stability for its clients.
Although the finer details of the deal remain a secret, completing this acquisition will empower BitGo to enhance its wealth management services by incorporating Prime Trust's crypto IRA fund and payment rails. Reflecting on the proposed collaboration, BitGo's Mike Belshe, its CEO and co-founder, stated, "This is a landmark transaction, leading a greater shift in the digital asset landscape toward a more secure and sustainable future."
The union promises several advantages for both entities, as outlined in BitGo's blog. A significant move would be including Prime Trust's Nevada Trust Company within BitGo's broad constellation of regulated trust firms, extending from South Dakota and New York in the USA to Germany and Switzerland in Europe.
Meanwhile, Bitcoin-only trading platforms Strike and Swan have moved their business away from Prime Trust's custody. Strike will rely on its custody services, whereas Swan has chosen Fortress Trust and BitGo. Fortress Trust was established by Scott Purcell, Prime Trust's original founder.
The regulatory landscape grows more challenging, with the U.S. Securities and Exchange Commission considering stricter rules for crypto companies that serve as custodians for customer funds. The anticipated acquisition enters the scene at a critical juncture.
Amidst a banking crisis in March, Prime Trust emerged as the custodian for Binance.US customer funds. It courted controversy last year when it sourced a half-million-dollar donation to Oregon's Democratic Party, which was later traced back to FTX executive Nishad Singh. It's worth noting that Galaxy Digital had an unsuccessful $1.2 billion bid to acquire BitGo last year, resulting in a legal dispute after the deal's cancellation.
