BitGo has received state approval for Custody Service – a Positive Signal for the Bitcoin, Ethereum and co.?
Home News BitGo receives state approval for Custody Service – a Positive Signal for the Bitcoin, Ethereum and co.?
Marcus Misiak –
As yesterday it became known, BitGo by the South Dakota Division of Banking, received the green light to operate as a regulated Custody Service (custodian Bank) for crypto-currencies for institutional investors.
In a press release on Businesswire Mike Belshe, the CEO and co-founder of BitGo (freely translated) said:
Custody is currencies of the missing part of the infrastructure for Crypto and this gap has kept institutional investors from the market.Traditional Custodians have no experience in dealing with crypto-currency. Stock exchanges, acting as Depositary Bank, represent a conflict of interest and regulatory concerns. BitGo Trust Company is a qualified custodian, and thus, the only custody offering that meets the highest safety requirements and legal compliance.
The approval means that the BitGo Trust Company can now offer in the USA regulated a Custody Service for crypto-currencies. Although the permit was approved “only” from the South Dakota regulatory authority, however, all the other States in the U.S. this authorization and acknowledge.
BitGo is the only company to offer Custody Services for crypto-currencies. Coinbase and Gemini have launched in the last months of their own Custody solutions, to attract institutional investors to the market. In addition, Goldman Sachs has planned, according to Reports, a similar Services.
However, BitGo is the first in the US, state-regulated Custody Service for crypto-currencies. The company has agreed, to the same extent as traditional financial Audits of companies and to allow to start “Know Your Customer” and to set the company books on a monthly basis open.
In accordance with the law in South Dakota, the approval will wait until after a 30-day period, since the citizens of South Dakota can appeal against the approval of an appeal.
In the press release Belshe indicates that a secure memory currencies for Crypto, and institutional investors has so far blocked the market entry, as these investors are accustomed to store their money safely and to have insurance. Accordingly, many analysts assume, that the crypto-currency market has currently mainly private investors. The approval of BitGo, a state-supported warranty returns, might therefore be a further step in order to pave the way for the entry of institutional investors into the cryptocurrency market.
Based on the technology from BitGo’s Wallet Services, the Custody deal in “Bank-Class-III-vaults”, support for more than 75 crypto-currencies, including Bitcoin (BTC), Litecoin (LTC), Bitcoin, Cash (BCH), Ripple (XRP), Ethereum (ETH), as well as numerous ERC20 Token, as well as Multi-User Accounts, and around-the-clock Support.