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The new Bitcoin-only trust company will combine the expertise of BitGo and Swan Bitcoin to drive adoption with minimal risk.
California based crypto custodian Bitgo Inc And Bitcoin services firm Swann is working to create a Bitcoin-only trust company. The new firm will offer clients Bitcoin custody without the risk of exposure to the crypto market.
According to an official Press releaseThe new firm will be the first Bitcoin-only trust company. It will combine Swan’s expertise with regulatory compliance expertise, BitGo’s Bitcoin cold storage technology and fraud prevention, onboarding and AML/KYC requirements in addition to its Bitcoin knowledge.
Swan and BitGo to push for Bitcoin adoption
Speaking on the partnership, BitGo CEO Mike Belshe said that the best model for the Bitcoin sector is to separate custody and exchange. Belshe says this model has worked well for the US financial industry for more than 100 years. He added:
“Our teams have worked together for almost a year on a robust qualified custody model. In early 2023, we identified an opportunity to combine the unique capabilities of each company and establish a Bitcoin-only custodian to support the innovators who will be at the forefront of driving Bitcoin adoption.
Despite the Bitcoin bear market decline, the press release reported attractive figures for both BitGo and Swan. Following the significant growth recorded so far in 2023, Swann forecasts a 50% increase in revenue to more than $75 million by the end of the year. Last month, BitGo successfully raised funding $100 million In Series C funding roundAt a valuation of $1.75 billion. The custodian said the funds will be used to expand its solutions including custody and wallet services. BitGo also plans to use the funds to facilitate strategic acquisitions.
Belshe revealed that the funding was provided by new investors but did not mention specifics. However, he added that investors were from Asian and US markets and were not limited to the crypto sector. The previous BitGo investment round saw participation from Galaxy Digital Ventures, Goldman Sachs Group Incand DRW Holdings.
Between January and August, BitGo saw a 60% increase in new customers and a 20% increase in its assets under custody (AUC). Additionally, the company recorded a 40x increase in staked assets and a 200% increase in fiat custody.
bitgo acquisition
In June, BitGo Cancelled The planned acquisition of rival company Prime Trust came just days after the two parties reached a preliminary agreement. in an announcement Posted On Twitter, BitGo did not provide a reason for the cancellation. Furthermore, there were no public details on the deal or its value. However, following the cancellation there was speculation that it stemmed from a cease and desist order from Nevada state regulators. Reportedly, Nevada’s Financial Institutions Division (FID) said that Prime Trust was short of customer funds and could not fulfill all withdrawal requests for the month at that time.
Interestingly, Galaxy Digital Holdings had previously planned to acquire BitGo for $1.2 billion. In 2021, Galaxy Digital Confirmed There are rumors that he has agreed to the purchase. However, Galaxy Digital acquisition terminated, saying that BitGo was not complying with the requirements. BitGo replied trial Demand for $100 million in compensation
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip down the secrets of crypto stories to the basics so that anyone anywhere can understand without too much background knowledge. When Tolu is not deeply immersed in crypto stories, he enjoys music, loves to sing and is an avid film buff.
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