The crypto custodian announced Tuesday the acquisition of Harbor, a security token platform best known for a failed bid to offer tokenized shares of a South Carolina apartment building. Harbor’s subsidiaries, which include a broker-dealer regulated by the Financial Industry Regulatory Authority and a transfer agent supervised by the Securities and Exchange Commission, are included in the acquisition, the companies said. The move allows BitGo to expand its services from custody, becoming what CEO Mike Belshe said is the first “full-stack” service provider in the digital securities space. The terms of the deal were not disclosed.
The acquisition essentially allows BitGo to recreate all parts of the traditional financial system, Belshe said, noting that BitGo itself is a licensed custodian through the South Dakota Division of Banking. “As we build the market infrastructure for crypto there’s a lot of pieces to put together. At the end of the day the existing market has this huge advantage in having built up its structure over decades and we’re trying to replicate that in a short period of time,” Belshe said.