Crypto Custody Service for Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin Wins Regulatory Approval in the US
BitGo, a pioneer of multi-signature technology, today announced that BitGo Trust Company gained US approval as a regulated, qualified custodian of cryptocurrencies for institutional investors.
The company’s BitGo Custody solution was approved by South Dakota regulators at the Division of Banking, charged with the regulation and supervision of state chartered and licensed financial institutions, “to maintain stability and public confidence in state chartered institutions and to protect public interests.”
The Palo Alto-based company, which offers enterprise-grade Bitcoin wallet solutions, as well as API access to its underlying security platform, introduced the industry’s first multi-sig hot wallet in 2013.
By leveraging its pioneering institutional-grade, multi-signature security, BitGo is working to establish itself as a qualified custodian that can deliver both top-level security and regulatory compliance.
BitGo expects that the approval by the South Dakota Division of Banking will also allow the company to act as a custodian across the US. According to the company’s chief compliance and legal officer Shahla Ali, “generally other states will give you reciprocity in the sense that other states have money transmission laws and they’ll exempt you from money transmission requirements.”
BitGo CEO Mike Belshe, a Silicon Valley veteran who served on the founding team of Google Chrome, says, “Custody has been the missing piece of cryptocurrency market infrastructure, and this gap has kept institutional investors out of the market.”
In a statement to Coindesk, Ali says that the approval will allow broker dealers to enter the cryptocurrency market with security.
“The trust company will enable us to offer a qualified custodial offering that is regulated, that has the money laun...