BitGo receives regulatory approval to offer custodial service for cryptocurrencies

Cryptocurrency security firm BitGo has announced the launch of BitGo Trust Company – a regulated, qualified custodian purpose-built for digital assets.

In May 2018, BitGo revealed that it was building the first qualified custodian specifically for digital currencies. Previously, it had entered into a definitive agreement to acquire Kingdom Trust Company to offer the first complete and independent qualified custodial offering for cryptocurrencies. But, within months it decided not to proceed with the acquisition and announced that it was seeking a charter to build BitGo Trust.

According to the official release, the South Dakota Division of Banking has approved BitGo Trust Company as a public South Dakota Trust Company.

BitGo Custody will support more than 75 coins and token. It addition it will offer 100% cold storage technology in bank-grade Class III vaults, institutional-grade policy controls, multi-user accounts, fast onboarding, and 24/7 support.

“Custody has been the missing piece of cryptocurrency market infrastructure and this gap has kept institutional investors out of the market,” said Mike Belshe, CEO, BitGo.

“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.”

Founded in 2013, BitGo is a leading provider of institutional-grade, multi-signature, multi-coin hot wallet. Last year, the company raised $42.5 million in a Series B funding round led by Valor Equity Partners with participation from David Sacks, Bill Lee, and DRW.