Cryptocurrency startup BitGo gets the regulatory approval as a qualified custodian of crypto assets. As per the official press release, the BitGo trust company has received an authorized license from the South Dakota Division of Banking. BitGo’s chief compliance and legal officer Shahla Ali stated that the firm can now pitch regulated storage solution to established investors.
Ali further stated that BitGo has received first-time regulatory approval which may mark as a regulated custodian that has been specially designed and built to target digital assets. BitGo the world’s most secure Bitcoin wallet has been working on presenting up-to-date safety solutions for digital assets it will offer a custodial solution which is a mixture of hot and cold wallet.
Once it does launch, BitGo will directly begin taking custody of assets. The team of BitGo will safeguard its custodial offering matches what they believe customers will need to be comfortable storing digital assets. The custody solution will come with policies, controls, procedures and disclosures, which are the vital requirements of the qualified custodian. The company has created this platform with a hope to validate the regulators and customers and that this model can further build a great trust company which will secure all the crypto assets, as stated in CoinDesk
Since January 2018 BitGo has been working to launch as a regulated custodian, however, the deal fell through, and in May, the company declared its plan to build its own custodian from the ground up. BitGo had acquired $12 billion digital asset management firm Kingdom Trust, which at the time one of a small number of regulated custodians offering digital asset custody to institutional investors.
As per the report published in Yahoo Finance, BitGo has joined companies like Citigroup, Coinbase and Gemini who are targeting the similar official investment market as compared to the traditional investment. Bernstein analyst Christian Bolu believes that crypto assets custody is an increasing opportunity and there is an adequate space for new market players to operate.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]