- The wallet provider and digital asset custodian signed a non-binding letter of intent to acquire Prime Trust.
- The deal’s success will provide BitGo with several benefits, including an increase in its wealth management offerings.
- Prime Trust’s API infrastructure will map over 1:1 with the wallet and digital asset provider services.
The 2022 bear market was a tough time for all in the crypto industry as crypto companies and projects could not actualize their visions and goals due to the unpredictability of the crypto market. However, since shedding out of the crypto winter, some companies have gone bullish and announced the expansion of their ecosystem.
On June 8, the cryptocurrency wallet provider and digital assets custodian —BitGo— announced that it had signed a non-binding letter of intent with Prime Trust. The signed letter of intent (LOI) ensures that BitGo acquires 100% of the equity of the parent company of Prime Trust.
Although BitGo did not fully reveal the terms of acquiring Prime Trust, the firm did list a few benefits of receiving the fintech infrastructure provider.
According to BitGo, Prime Trust’s fintech API infrastructure, and Prime Trust exchange network will merge with BitGo Wallet Service and BitGo’s Go Network to map over 1:1. BitGo will own Prime Trust’s network of banking partners, wealth management offerings, and crypto offering IRA.
“The combination of Prime Trust and BitGo would be a significant enhancement for the industry,” Jor Law, the Interim CEO of Prime Trust, said.
“With the expected acquisition of Prime Trust, BitGo is well-positioned to improve its trusted solutions and service the combined customer base,” the CEO and Co-Founder of BitGo, Mike Belshe, commended.
The acquisition of Prime Trust will also lead to the joining of Prime Trust’s Nevada Trust with BitGo’s present worldwide network of regulated companies in Germany, New York, South Dakota, and Switzerland.
Brief History of BitGo
Founded in 2013, BitGo offers safe and secure scalable solutions for digital assets by borrowing and lending, providing regulated custody and vital infrastructure to investors and builders.
The crypto company had expanded beyond its initial features, evolving from providing wallets to offering full-suite solutions which enabled customers to store their digital assets safely.
BitGo offers access to DeFi (Decentralized Finance) and NFT (Non-Fubgible Token) wallets and staking. The firm is also supported by other key names in the crypto industry, like Goldman Sachs, Galaxy Digital Ventures, Digital Currency Group, and many more.
Brief History of Prime Trust
Founded in 2016, the US-based company Prime Trust provides virtual assets infrastructure tools. The company is powering innovation in the virtual economy by offering infrastructure to fintech and digital asset innovators.
In January, Prime Trust allegedly laid off one-third of its staff employees. The crypto firm was not the only company affected by the crypto winter, as many other crypto firms were reported to have also laid off their workers to operate better in the bear market.
Conclusion
BitGo signing a letter of intent on acquiring Prime Trust is a bold move, as the SEC and other authorities have clampdown on crypto regulations since the tragic collapse of FTX last year.
