BitGo Expands Its Custody Products to Support New Ethereum Assets
BitGo, a blockchain-based software firm, disclosed about the expansion of its custody products, as well as, services. This would provide a helping hand to extend its support to 57 fresh Ethereum tokens. The company indicated that their action followed after witnessing strong demand for its services focusing on safeguarding the private keys. One of the primary reasons that are getting attraction is its security, custodial issues and compliance in respect of blockchain-based cryptocurrencies.
Supporting Popular Digital Coins
BitGo, which was established about five years ago, has been engaged in offering different services like offline vaults, private blockchains to biggest digital currency exchanges, digital wallets, and single integration APIs. It is also responsible for managing more than $12 billion worth of transactions on a monthly basis. The software firm indicated that it also extends its support to other popular digital currencies such as bitcoin, ripple, litecoin, ERC20, RMG, bitcoin gold, bitcoin cash apart from Ethereum. Aside from these popular virtual currencies, there would be more in the offing, crowdfundinsider.com reported.
The key factor behind in attracting more is about its safeguarding of private keys since the alphanumeric strings perform as passwords for digital coins. Therefore, if any virtual asset is lost, then it would mean it has gone forever. The company’s latest actions suggested that it is coming up well with the competitive landscape being faced in the changing environment in the crypto sector. Until now, its services are restricted to the top two digital coin platforms only, i.e., bitcoin and Ethereum.
In its announcement, the company declared that “BitGo is a blockchain software company that secures digital currency for institutional investors. Its technology solves the most difficult security, compliance and custodial problems associated with blockchain-based currencies, enabling the integration of digital currency into the global financial system. BitGo’s customers, which include the world’s largest cryptocurrency exchanges and financial institutions, conduct more than $10 billion in transactions monthly.”
Earlier, BitGo CTO, Benedict Chan, told media that institutions are not keen to manage their coins on their own. Therefore, he thinks that they are left with no alternative but to look for someone to support multiple digital coins. Still, there are lots of institutions that are yet to enter the cryptocurrency market, and their foray could mean more demand for storage.
Planning For A License
Interestingly, BitGo’s VP of product marketing, Robin Verderosa, has shared additional details on its plan. For instance, the company is planning to get a BitLicense in New York of the United States. Aside from this, the software firm is also intending to obtain an eligible custodian license in South Dakota. He also indicated about plans are afoot to provide more custodial services before the current year ends besides adding over 100 digital coins.
The demand is growing because there are only a few companies to meet the requirements. Japanese bank Nomura, the Swiss-based Smart Valor, and the American-based Coinbase are the three companies with a license to offer crypto storage solutions. This would mean that there would be enough space for more entities to join the list. Incidentally, it was only last year that BitGo has raised $42.5 million through a Series B financing round.