It seems everywhere one turns today another avenue is opening up making it easier for institutional money to enter the world of crypto. Just in the past few days we’ve seen Coinbase unveiling Crypto Custody for institutions, HSBC using the blockchain for trade finance, and a German bank using Bitcoin to bypass SWIFT. And today California-based Bitgo has just rolled out new services for institutional investors:
Announced Sunday, Palo Alto-based startup BitGo has unveiled a new suite of custodial services aimed at institutional investors who may be eying the market with interest.
The product launch notably builds on BitGo’s move to buy Kingdom Trust, a US qualified custodian of traditional financial assets, in January. But while that acquisition is still awaiting regulatory approval, that isn’t stopping BitGo from bolstering its offerings.
BitGo head of product Tracy Olsen indicated that the launch – which finds BitGo stratifying its service into three offering tiers – is about framing the company as a full spectrum provider of security solutions, one that can now scale from consumer to institutional needs.
The three services tiers include “qualified custody,” in which BitGo offers secure storage and custody through Kingdom Trust; “institutional custody,” a solution that enables clients to manage wallets connected and disconnected from the Internet; and self-managed custody.
As such, Olsen positioned the full offering as one that can appeal to the risk-tolerance of all types of clients, from those who want to set up and manage wallets themselves, to those that want others to manage the sensitive cryptographic keys required to access funds.
“These are really targeted at different market segments. The market is really demanding these three different solutions,” Olsen continued.
As for customer details, Olsen indicated that BitGo would not reveal the total value of the assets it helps custody, though she said 15 percent of bitcoin transactions now occur through the company’s wallet offerings.