BitGo Subjects Wall Street with Custody Products for Bitcoin
The Big Wall Street organizations currently have options for storage of Bitcoin. BitGo which is a Palo Alto-based startup made an announcement on Sunday of the unveiling of the new suite of the custodial services which is focused on the institutional investors who eye the market with interest.
Therefore, this launch of the product adds to the BitGo move to purchase Kingdom Trust which is a financial assets custodian in the US. However, as the acquisition awaits the regulatory approval. However, this cannot stop BitGo from the bolstering of its offerings.
Tracy Olson who is the head of product in BitGo said that the launched about setting up the organization just like a full spectrum provider of the security-based solutions and this might be from the consumer and the institutional requirements.
Olson said to Cryptona.co:
“We’re definitely seeing a lot of bigger names interested in digital currencies. But there are other customers like smaller hedge funds, they just don’t want to have to hold custody themselves. They’re looking to have the security and compliance and storage solutions that they can outsource to, and that’s what BitGo is really delivering.”
Therefore, the said three services tier includes the qualified custody, the institutional custody and also the self-managed custody. Therefore, Olson was involved in the positioning of the whole offering as one which can withstand the risk-tolerance may it be of which type of client. This is from the individuals dedicated to set up and manage wallets to the others who may need to involve themselves in the management of the cryptographic keys for funds access.
“These are really targeted at different market segments. The market is really demanding these three different solutions.”
For the details linked to the customers, Olsen said that BitGo would not reveal whatsoever the asset value it helps custody.
Olsen also indicates that BitGo currently provides custody to more than 20 cryptocurrencies but is in the quest to add the numbers in 2018. He said, “We see a lot of demand of customers for a wide variety of coins. We evaluate each of them for viability in the market and then we prioritize them accordingly.”
BitGo was primarily a bitcoin-only firm and was later involved in increasing their coins in 2017 and also an increment in the hedge fund number.
“They see it as a compelling asset class and want to diversify their portfolios with Ethereum, ripple and other digital currencies.”
Wall Street Ambitions
The entire announcement which was made recently is just like a recast of BitGo as a rare crypto startup which has the readiness to appeal to the individuals who want to carry out business on Wall Street. The announcements have also propelled Goldman Sachs to launch the trading desk. Therefore, custody and security investment has been lagging behind and this has proven that there are such businesses currently.
Coinbase and Ledger are the two other organizations which might raise big fund grounds meant to serve the custody products to more clientele.
Olsen made a conclusion;
“There’s a reputation out there for digital currencies that they may be associated to the underworld, but I believe they are coming around and are seeing the value in investing in this asset class.”