- BitGo and Swan plan to establish a Bitcoin-only trust company for custody services, separating Bitcoin from other digital assets.
- The joint venture, pending regulatory approval, combines BitGo’s custody expertise with Swan’s onboarding and fraud prevention knowledge.
- This initiative aims to create the first Bitcoin-only trust company in the United States, aligning with a traditional financial industry model.
According to plans revealed on September 15 by BitGo and Swan Bitcoin, the United States may soon have a Bitcoin-only trust organization. The corporations said in a statement that the joint venture is subject to regulatory approval.
The upcoming entity will conduct trust company-like functions such as Bitcoin (BTC) custody, administration, and management on behalf of its beneficiaries. As noted by Cory Klippsten, CEO of Swan, the solution aims to provide Bitcoin custody while avoiding the hazards associated with having other altcoins under the same roof.
“For years, we’ve heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only software and services stack that is focused strictly on the best custody that leverages Bitcoin’s unique features,” Klippsten stated.
According to him, the companies are in contact with state regulators about the plans but have not yet filed for regulatory approval, “We are evaluating acquisition options first,” he noted.
Its website shows that BitGo provides digital asset security and custody for over 700 cryptocurrencies. Swan’s firm, on the other hand, is entirely focused on Bitcoin, letting users invest in Bitcoin through one-time and recurring purchases, with custody of records stored at Fortress Trust and Bakkt, while BitGo functions as a cold storage custodian.
The new business will target institutional investors, including asset managers, pension funds, family offices, governments, and corporate treasuries. Among other Bitcoin-related services, it will provide cold storage, fraud protection, anti-money laundering, and know-your-customer protocols.
Institutional crypto investors are a rapidly increasing industry in the United States, particularly as the world’s largest asset managers seek regulatory clearance for a spot Bitcoin exchange-traded fund (ETF).
Its website shows that BitGo provides digital asset security and custody for over 700 cryptocurrencies. Swan’s firm, on the other hand, is entirely focused on Bitcoin, letting users invest in Bitcoin through one-time and recurring purchases, with custody of records stored at Fortress Trust and Bakkt, while BitGo functions as a cold storage custodian.
The new business will target institutional investors, including asset managers, pension funds, family offices, governments, and corporate treasuries. Among other Bitcoin-related services, it will provide cold storage, fraud protection, anti-money laundering, and know-your-customer protocols.
Institutional crypto investors are a rapidly increasing industry in the United States, particularly as the world’s largest asset managers seek regulatory approval for a spot Bitcoin exchange-traded fund (ETF).
Several major Wall Street banks, notably Bank of New York Mellon and Deutsche Bank, provide bitcoin custody options to institutional investors.
Swan’s CEO stated, “We believe there is a high likelihood that several ETFs will be approved in 2024, resulting in a new round of entrants to the Bitcoin market seeking mature, reputable, technologically proficient partners for various needs,” The SEC has postponed decisions on the spot Bitcoin product. As deadlines approach, many think the regulator will postpone a judgment until early 2024.
According to Mike Belshe, CEO of BitGo, “Our teams have worked closely together for nearly a year on stronger qualified custody models. Early in 2023, we recognized the opportunity to establish a Bitcoin-only custodian, combining each company’s unique capabilities and supporting the innovators at the forefront of pushing Bitcoin adoption.”
