BitGo, a California blockchain service firm has keenly studied the custodial needs of customers. Accordingly, it is building its first regulated and qualified custodian solution specifically for cryptocurrency assets.
According to its blog posted on 24th May, BitGo is working on it first qualified custodian built specifically for digital assets. The firm’s main intention is to develop an new, regulated and qualified custodian as to offer the best custodial solution for its clients. Simultaneously, it also declared that it would no longer proceed with acquiring Kingdom Trust.
However, the marketing vice president, Clarissa Horowitz said that startup came to the decision after considering its clients requirements. She said:
“We spent a lot of time over the course of this working with customers because ultimately that’s who we’re going to be serving and we realized they would be best served by a custodian who was entirely focused on their assets, so our focus has been to create a fully qualified independent digital custodian”.
Recently, BitGo had announced that it has launched a custodial solution for institutional investors. Since, BitGo had an agreement with Kingdom Trust with main propose to offer multi-level set for crypto asset security.
At present, the firms offer two types of custody options, such as self-custody and full custody. Further, it will expand its regulated and qualified custodial services products with US investors.
The blog post reads;
“BitGo Trust is ground-breaking for our industry because it will be the first qualified custodial solution designed specifically to hold digital assets for institutional investors independent of any exchange or trading activities”.
According to firm, variations in markets and earlier crises have cleared that there is need for custodianship of assets by an autonomous custodian. However, it is considered as crucial part of market organization which is much needed in crypto world.
“Just like with every other asset class, digital currency needs custodianship. Custodians make institutional investing possible by providing a level of checks and balances to keep money safe. This requires a strong separation of duties between exchanging the asset and holding the asset”.
Significantly, BitGo is gradually stepping towards digital currency investments. With the main intention to make crypto transaction easily accessible in a realistic manner and highly secured.