Key takeaways
BitGo and Swan to launch a new trust company
Crypto custodian BitGo and bitcoin financial services firm Swan have announced plans to launch a Bitcoin-only trust company.
According to the press release published on Thursday, the Bitcoin-only trust company will offer custody without exposure to other digital currencies. The trust, which will be launched following regulatory approval, will combine BitGo’s custody capabilities with Swan’s expertise in fraud prevention and onboarding.
The companies said it would be the first Bitcoin-only trust company in the United States. BitGo CEO Mike Belshe said,
“We believe the best model for the Bitcoin industry is the same battle-tested model that has been part of the US financial industry for over a century: the separation of exchange and custody. Our teams have worked closely together for nearly a year on stronger qualified custody models. Early in 2023, we recognized the opportunity to establish a Bitcoin-only custodian, combining the unique capabilities of each company and supporting the innovators that will be at the forefront of pushing Bitcoin adoption.”
BitGo remains a leading custodian in the crypto space
This latest cryptocurrency news comes as BitGo continues to expand its presence in the cryptocurrency space despite the ongoing bear market. BitGo is one of the custodians Swan hired for its Bitcoin storage needs.
Cory Klippsten, Swan’s CEO, also commented that;
“We immediately saw the vision,” said Cory Klippsten, Swan’s CEO. “For years, we’ve heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only software and services stack that is focused strictly on the best custody that leverages Bitcoin’s unique features. It’s important to us to build a custodian without the risks of securing many altcoins within the same trust company as Bitcoin. We want to do our part to build a dedicated ecosystem for Bitcoin, separate from industry speculators, to allow for innovation in custodial offerings.”
This latest development comes a few days after South Korean Hana Bank and BitGo announced a partnership to launch a joint crypto custody venture. The joint venture will combine Hana Bank’s knowledge of financial services and compliance with BitGo’s crypto custodial solutions.
Credit: Source link