BitGo received permission from American regulators to create a custodian service
BitGo has received approval from the South Dakota Banking Department to provide a qualified digital asset storage service, according to a press release released today..
This means BitGo Trust Company can now manage a secure vault for digital assets “targeted at institutional investors,” Chief Legal Compliance Officer Shahla Ali said in an interview with Bitcoin Magazine..
“BitGo Vault builds on a multi-signature security system and provides a modern kind of protection for a modern asset,” she added. “BitGo has been working on an application for qualified storage status over the past year.”.
According to South Dakota regulators, a trust cannot store digital assets until 30 days have passed from the date it was authorized..
In addition to the volatility of cryptocurrencies, the problem of which, among others, stablecoins are designed to solve, the young market for institutional investors is deterred by the lack of reliable solutions for storing assets. As BitGo CEO Mike Belsh said, the lack of ready-to-use custody solutions “kept institutional investors out of the market.”.
BitGo is not the first company to offer an institutional-grade cryptocurrency storage service. Earlier, exchanges Coinbase and Gemini launched their own vaults, hoping to attract large investors to the market, and financial giants such as Goldman Sachs and Northern Trust are presumably developing similar services..
In a press release, Belsh notes that unlike the custodian services offered by cryptocurrency exchanges, BitGo does not perform any other function. The BitGo service is based on the technology the company uses in its wallets, offers cold storage of cryptocurrencies in “bank-grade vaults like Class III”, support for over 75 digital assets, multi-user accounts and 24/7 support.
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