BitGo

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BitGo
Bitgo color jpg.jpg
Founded 2013
Headquarters Palo Alto, CA
Key People Mike Belshe, Co-Founder and CEO; Benedict Chan, CTO; Dave Larson, CFO; Shahla Ali, Chief Compliance and Legal Officer
Employees 50-200
Products Wallets and security services
Twitter @BitGo
LinkedIn Profile
Facebook bitgoinc
Website BitGo Home
Releases Company News
Blog BitGo Official Blog

BitGo is a blockchain-based cryptocurrency custody company. Its services are aimed at institutional investors.[1]

History

On September 14, 2018 BitGo announced that its BitGo Trust Company had been approved to operate as a public trust company by the South Dakota Division of Banking, allowing it to provide regulated storage for cryptocurrencies. Mike Belshe, co-founder and CEO of BitGo, highlighted BitGo's exclusive focus on custody as the company's unique selling point when he said, "exchanges that double as custodians present a conflict of interest and raise regulatory concerns."[2]

In October 2018, BitGo reported that it had raised $84.5 million in investments after completing two rounds of investing.[3] The second round, Series B, closed after the company received its trust company registration. The round was led by Goldman Sachs and Mike Novogratz's Galaxy Digital.[4]

BitGo announced in late October 2018 that it would support DGX, a stablecoin backed by one gram of gold per digital coin.[5]

In January 2019, BitGo announced a partnership with Genesis Trading, a company that facilitates digital asset OTC trades for institutional traders, in order to offer cryptocurrency trading services off-exchange. According to Genesis Trading CEO Michael Moro, institutional and high net worth investors clients of BitGo will be able to trade cryptocurrency through Genesis Trading, without having to go through an exchange like Coinbase. This allows them to execute trades without their digital assets ever leaving BitGo's custody.[6]

In July 2019, BitGo announced that it had begun supporting cryptocurrency staking as part of its custody services.[7]

Products and Services

BitGo's main service is providing security for the digital asset holdings of institutional investors.[8]

"Wrapped Bitcoin"

In January 2019, BitGo launched "Wrapped Bitcoin," an Ethereum-based digital asset-backed one-to-one by the market value of bitcoin, similar to how stablecoins are backed by fiat currency. Use cases for this product include serving as collateral for decentralized lending services, which may potentially create greater liquidity in services decentralized or "dex" exchanges.[9]

Staking

Staking is a practice in which digital assets generate interest by connecting to a proof of stake blockchain network, such as Dash, and validate blocks in that network. BitGo announced that the company would begin offering "staking" as part of its custodial services, allowing its customers to profit off of interest from their digital assets while in BitGo's custody.[10]

References