Blockchain security startup Bitgo has announced that it has received regulatory approval in the U.S. to offer cryptocurrency custody services. With the move, BitGo becomes the latest company to throw its hat into the crypto custody ring as the market prepares to welcome large institutional investors who have previously been put off by crypto’s substantial custody risk.
BitGo announced on Thursday, Sept. 13, that it had received this regulatory approval in the form of a state trust company charter from the South Dakota Division of Banking. With the move, it now becomes the only regulated custody service available on the market that is offered exclusively for digital asset storage.
While the crypto market has been in a downturn for much of 2018 and BitGo is potentially opening itself to a level of regulatory scrutiny that other cryptocurrency startups do not face, co-founder and CEO Mike Belshe believes that the market reception for a regulated crypto custody offering will make any sacrifices worth it.