BitGo has received permission to provide services for the storage of cryptocurrency in the US
Custodian solution BitGo was approved by banking regulation South Dakota. BitGo expects that this resolution will enable the company to provide similar services in all States. CEO of BitGo, Mike Bell also said that in the future the company intends to become licenzirovanie broker-dealer to expand its range of services in the area will cryptovault, becoming a reliable service for institutional investors interested in working with digital of financial assets.
While the crypto market is experiencing a downturn during the greater part of 2018, and BitGo potentially opens itself up to the level of control over the norms, which do not face other cryptocurrency startups, co-founder and CEO Mike Belshe believes that the market acceptance for the controlled cryptobranchidae offer will bring any sacrifice.
In his words :
“This is the missing piece of infrastructure – today’s treacherous environment. Hedge funds in need, family offices need it, they can’t participate in the digital currency, unless they have storage space, which is regulated […] It is early stages in the industry, which is now unstable. We are in a low cycle, in terms of where we go, but institutions see an opportunity. This will quickly develop.”
With the approval of BitGo now must file regular financial audits and comply with AML and KYC rules in addition to the monthly requests for disclosure of information. According to Belshe, plan BitGo will eventually become a broker-dealer, but there is currently no established terms for this.
Cryptocurrency Custody is a growing opportunity
BitGo brings together an increasing number of companies with proposals for the storage of cryptocurrency, including Citigroup, Coinbase and Gemini, all of which are aimed at the same market institutional investment, and the expected entrance of traditional investments. Analyst Bernstein Christians Bolu believes that new market participants have enough space.
Quoted from CNBC , he said:
“With the development of seasons cryptogenic assets and institutional demand there are many opportunities for traditional companies to participate in the ecosystem. These include the provision of custody services and asset management, traditional brokerage functions, such as market production “.
In January, CCN reported that BitGo has acquired a company to manage digital assets worth 12 billion dollars, which at that time was one of a small number of controlled guardians, offering digital storage of assets to institutional investors.