BitGo revealed yesterday it has received regulatory approval from the South Dakota Division of Banking to operate as a public South Dakota Trust Company. BitGo says it is the “first qualified custodian purpose-built for storing digital assets.”
BitGo offers a custody solution for institutional investors in digital assets – delivering “modern security for modern assets.”
“Traditional custodians don’t have experience handling cryptocurrency,” said Belshe. “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.”
BitGo has been providing a multi-coin wallet since 2013. Earlier this year, BitGo announced that it had completed a SOC 2 examination.
At the end of 2017, BitGo today closes on a $42.5 million Series B financing, led by Valor Equity Partners with participation from David Sacks, Bill Lee, and DRW. At that time, BitGo said it was already doing $8 billion in digital transactions each month. Today, that number has risen to over $15 billion.
Customers include the CME Group and The Royal Mint.
BitGo claims to be the world’s largest processor of on-chain Bitcoin transactions, processing 15% of all global bitcoin transactions. The company has a customer base that includes the world’s largest cryptocurrency exchanges and spans more than 50 countries.