Bitgo’s assets under custody have exceeded $16 billion. The company stated that due to the economic impact of the coronavirus pandemic and the recent Bitcoin bull market, “institutional investor interest is unprecedentedly high.” There are also rumors that PayPal is in acquisition negotiations with the company.
$16 billion regulated cryptocurrency
Bitcoin announced on Wednesday that it has reached a new milestone with more than $16 billion in digital assets under custody. The company pointed out that this achievement further proves the interest of institutional investors in cryptocurrencies and elaborated:
As institutional interest in cryptocurrencies continues to surge, top investors are seeking institutional-grade security and financial infrastructure to custody, trade, and lend their digital assets.
Bitgo detailed that it currently accounts for more than 20% of all bitcoin transactions on the chain, processes more than $15 billion in transactions per month, and supports more than 300 coins and tokens. The company is backed by Goldman Sachs, Craft Ventures, Digital Currency Group, Drew, Galaxy Digital Ventures, Redpoint Ventures, and Valor Equity Partners. Bitgo said it has more than 400 customers in 50 countries, including Bitstamp, Nexo and Pantera.
Once a simple cryptocurrency wallet provider, Bitgo’s business has expanded to provide crypto financial services to institutional investors-including liquidity, custody, and security solutions. The company launched the custodial service Bitgo Trust Company in 2018. This year, it launched major transactions and lending as well as investment portfolio and tax services.
Mike Belshe, CEO of Bitgo, commented that his company “set about providing trust and paving the way for mainstream investment in digital assets”, adding:
Due to the economic impact of this epidemic and the outstanding performance of Bitcoin, we have seen unprecedented interest from institutional investors.
In October, there were rumors that payment giant Paypal was negotiating to acquire Bitgo. However, according to sources quoted by Fortune magazine, the deal failed and PayPal is now considering other companies in the crypto field.
What do you think of Bitgo, which has $16 billion in digital assets? Let us know in the comments section below.
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