BitGo, the leading institutional-grade cryptoassets security company based in California, has received approval from the South Dakota Division of Banking for its cryptocurrency custodial service via its wholly owned subsidiary, BitGo Trust Company, according to a Business Wire press release on September 13, 2018.
BitGo Trust Company to Offer Cost-efficient Crypto Custody
As stated in the news release, BitGo’s crypto custody venture has received the approval stamp of the South Dakota Division of Banking, the agency in charge of regulating state chartered banks, money lenders and other financial institutions in the United States.
With this success, BitGo would now launch its dedicated digital assets custodial services through BitGo Trust Company, to help institutional investors, blockchain-based virtual currency-powered business and cryptocurrency exchanges store their cryptos.
While there are hundreds of cryptocurrency exchanges and trading platforms that allow hodlers store their cryptoassets, some of these platforms often keep users’ funds in online wallets for easy retrieval, making the exchanges a target for highly sophisticated hackers.
In 2018 alone, there have been several reported cases of crypto exchange heists, with the most notable event being the Coincheck exchange hack earlier in January.
The CEO of BitGo, Mike Belshe reiterated that the lack of highly secure cryptocurrency custodial services is the major challenge discouraging institutional investors from latching onto the crypto bandwagon and with the launch of BitGo Trust Company, this gap would be bridged.
“Custody has been the missing piece of cryptocurrency market system, and this huge gap has kept institutional investors out of the market,” he said, adding “traditional crypto lack adequate experience in handling cryptoassets. Exchanges that offer custodial services present a conflict of interest and raise regulatory concerns. BitGo Trust Company is a qualified custodian, and therefore the only custody service that provides the highest levels of both security and regulatory compliance.”
The BitGo Custody Advantage
The BitGo team have made it clear that their crypto custody offering builds upon the solid foundation of their crypto security solutions which has stood the test of time.
BitGo claims its new digital assets custodial service will enable institutional clients to store more than 75 cryptocurrencies and tokens in its 100 percent cold storage technology bank-grade Class III vaults, support multi-user accounts, 24/7 customer care service amongst other features.
That’s not all; the firm claims to offer low setup costs and minimal assets under custody fees (AUC).