Cryptocurrency platform BitGo announced the receipt of approval from American regulators on the activity of providing custodial services. So BitGo has become the only regulated services in the market offering storage of digital assets.
The company received permission to work in South Dakota (USA) and now operates as a state trust company.
According to co-founder and CEO of BitGo, Mike Belshe (Mike Belshe), this event will help bring in cryptocurrency market institutional investors, as BitGo took the place of the missing element in the infrastructure.
“Hedge funds need it, family offices need it — they can’t become members of the cryptocurrency market as long as they have no adjustable space where you can store assets… This is the initial stage of development yet unstable industry. We are now experiencing a down-cycle from the point of view of where we go, but the institutional investors see lots of opportunities. Everything is developing quite rapidly,” said Bell.
Now, as a regulated service, BitGo needs to undergo regular financial audits and comply with the principles of “know your customer” (KYC) and anti money laundering (AML). Bell believes that the company, in the end, can become a broker-dealer, but when this will happen is unknown.
It is worth noting that custodial services in the cryptocurrency sphere not only offers BitGo. Their services have conglomerate Citigroup, exchanges Coinbase and Gemini. In addition, about the possibility of creating the service for the storage of digital assets think such giants as Goldman Sachs and Bank of America.
Recall that BitGo launched its custodial services in may, after acquisition of Kingdom Trust, a company specializing in the storage of traditional financial assets. In July, the service has added support 57 tokens on the basis of Ethereum, and later in the same month — zcash for support.