Bitgo’s assets in custody have exceeded $ 16 billion. The company says it sees “unprecedented interest from institutional investors,” as a result of the economic impact of the coronavirus pandemic and the recent bitcoin bull run. There were also rumors that Paypal would be in takeover talks with the company.
$ 16 billion in cryptocurrencies in custody
Bitgo announced on Wednesday that it has reached a new milestone of more than $ 16 billion in digital assets in custody. The company noted that the performance further validates institutional investors’ interest in cryptocurrency, explaining:
As institutional interest in cryptocurrencies continues to grow, top investors are seeking institutional security and financial infrastructure to hold, trade and lend their digital assets.
Bitgo indicated that it currently accounts for more than 20% of all on-chain Bitcoin transactions, processes more than $ 15 billion in monthly volume, and supports more than 300 coins and tokens. The company is backed by Goldman Sachs, Craft Ventures, Digital Currency Group, Drw, Galaxy Digital Ventures, Redpoint Ventures and Valor Equity Partners. Bitgo says it has more than 400 customers in 50 countries, including Bitstamp, Nexo and Pantera.
Once a simple cryptocurrency wallet provider, Bitgo has expanded its business to provide crypto-financial services – including liquidity, custody and security solutions – to institutional investors. In 2018, the company launched its retention obligation, Bitgo Trust Company. This year it launched Prime Trading and Lending, as well as Portfolio and Tax services.
Bitgo CEO Mike Belshe noted that his company “was out to build trust and pave the way for mainstream investments in digital assets,” added:
We are seeing unprecedented interest from institutional investors due to the economic impact of the pandemic, as well as bitcoin’s extraordinary performance.
In October, it was rumored that payment giant Paypal was in talks to acquire Bitgo. However, according to a source cited by Fortune, that deal has failed and Paypal is now considering other companies in the crypto space.
How do you feel about Bitgo holding $ 16 billion in digital assets? Let us know in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or invitation to an offer to buy or sell, or a recommendation or endorsement of products, services, or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.