BitGo has signed a term sheet to acquire the equity of Prime Core Technologies, the parent company of Prime Trust. Both companies provide services such as custody to digital asset firms.
Earlier today, rumors filtered out about a deal with BitGo being in the works as well as rumblings regarding a cash crunch at Prime Trust.
In a blog post, BitGo emphasized it was bringing continuity and stability for Prime Trust customers. At the same time, the acquisition of Prime Trust will make BitGo the first global digital asset firm to offer the full stack of solutions for Fintechs and institutions.
BitGo did not reveal the terms of the agreement beyond it being an equity purchase.
Prime Trust’s CEO, Jor Law, described the combination of the two firms as a “significant enhancement for the industry.” Law added:
“No other company will have the breadth of product and services nor depth of experience that this combined company would have. We are excited to offer our world-class infrastructure within a broader ecosystem and revolutionize the future of crypto.”
BitGo CEO and co-founder Mike Belshe, called the purchase a “landmark transaction,” pointing to a more secure and sustainable future for the digital asset ecosystem.
“With the expected acquisition of Prime Trust, BitGo is well positioned to enhance its best-in-class, trusted solutions and to service the combined customer base.”
BitGo shared the following bullet points about the purchase:
- Prime Trust’s Nevada Trust Company will join BitGo’s existing global network of regulated trust companies in South Dakota, New York, Germany, and Switzerland.
- Prime Trust’s Fintech API infrastructure and Prime Trust exchange network to reinforce BitGo Wallet Services (BWS) and BitGo’s Go Network — custody, liquidity, settlement, and compliance capabilities to map over 1:1.
- BitGo to gain Prime Trust’s world-class network of banking partners and payment rails, crypto IRA, and additional wealth management offerings.
Prime Trust was once one of the most successful participants in the securities crowdfunding industry. The company shifted gears to provide services for digital assets at the emergence of the crypto sector. While details as to why Prime Trust pursued an apparent shotgun wedding, the entire digital asset sector will give a collective sigh of relief that Prime Trust services will remain intact.