Largest-Ever Custody Service Expansion: 57 Ethereum Tokens Added by BitGo
On Tuesday, July 10, the security startup BitGo told in an interview that it will expand its suite of custody products and services to upheld 57 new ethereum (ETH) resources, a move which is driven by interest for services that protect private keys – the alphanumeric strings that go about as passwords for crypto resources and that, once lost, are gone until the end of time. The more extensive universe of crypto tokens is turning more available to institutional financial investors.
As such, the move is telling everyone for the blockchain security part, one that showcases how it’s in the midst of a changing competitive scene.
Established in 2013, BitGo has turned into an industry pioneer overseeing wallets at crypto trades, yet to date, its services have been restricted to bigger protocols like bitcoin (BTC) and ethereum (ETH). In fact, the general absence of alternatives has even driven conventional custodians like JPMorgan, BNY Mellon, and Northern Trust to think about the business sources.
The startup is not the only one in the industry to debut institutional custody services. Swiss startup Smart ValorSwiss startup Smart Valor, Japanese bank Nomura and U.S. exchange provider Coinbase are just three of the companies giving out licensed crypto storage solutions.
The addition of Ethereum (ETH) could serve as a key first-move advantage. As per the CTO of BitGo, Benedict Chan, there has been an increase in the demand for custody solutions for other crypto assets such as the kind it’s now adding.
The CTO of BitGo, Benedict Chan said:
“These institutions, they generally don’t want to self-manage their coins. They are looking for someone that can support multiple coins.”
Robin Verderosa, the VP of product marketing said BitGo is now focusing on obtaining a BitLicense in New York and a qualified custodian license in South Dakota. BitGo seeks to provide even more custodial services, aiming to add more than 100 cryptocurrencies by the end of 2018.
According to Verderosa, the priority of BitGo has become courting institutional investors, adding:
“What we’ve learned is that they’re interested in investing in a basket of coins and tokens that kind of help hedge the market and give better returns.”
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