BitGo and Swan Announce Plans for America’s first Bitcoin-Only Trust Company
Both BitGo and Swan Bitcoin announced today they plan to launch a US-based Bitcoin-only trust company. The collaborative endeavor is awaiting regulatory green light, but once approved it will act as a trust company, handling Bitcoin custody, oversight, and stewardship for its beneficiaries.
No Altcoins Welcome: A Bitcoin Purist’s Dream
Cory Klippsten, the mind steering Swan Bitcoin, provides a perspective we’ve sorely lacked,
“For years, we’ve heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only software and services stack that is focused strictly on the best custody that leverages Bitcoin’s unique features.”
So, what’s the play? The gist: undiluted Bitcoin custody minus the shadow of altcoins. The companies are yet to roll the dice with regulators, with Klippsten hinting at first exploring acquisition routes.
BitGo isn’t new to the crypto parade. Flaunting support for over 30 cryptocurrencies, they’ve been in the game, ensuring digital asset safety. Swan, the purist of the pair, orbits strictly around Bitcoin, empowering Bitcoiners to dip their toes or dive deep into the Bitcoin pool.
For the uninitiated, think of BitGo as the unwavering cold storage guardian, with Swan leaning on stalwarts like Fortress Trust and Bakkt for record custody.
Targeting the Big Fish: Institutions & Governments
The new venture isn’t for the faint-hearted. Swan and BitGo have their sights set on the whales of the investment sea – asset managers, pension sharks, family offices, and even the grand behemoths: governments and company treasuries.
And they’re not skimping on services. From cold storage to AML and KYC protocols, they’ve got it all mapped out. The race is on.
As the US witnesses an influx of institutional investors vying for a slice of the Bitcoin pie, heavyweights like Bank of New York Mellon and Deutsche Bank are already dishing out crypto custody offerings.
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Klippsten foresees a storm of ETF approvals come 2024, beckoning a fresh wave of Bitcoin market entrants,
“We believe there is a high likelihood that several ETFs are approved in 2024 and thus a new round of entrants to the Bitcoin market seeking mature, reputable, technologically proficient partners for a range of needs.”
As the Securities and Exchange Commission plays the waiting game with spot Bitcoin products, analysts are betting on a decision delay till the dawn of 2024.
Lastly, Mike Belshe, BitGo CEO, said they had been working together for other a year on the project after recognizing “the opportunity to establish a Bitcoin-only custodian” in the US and its potential impact on Bitcoin.
BitGo is a leader in the digital asset realm, delivering unparalleled wallet security and scalability. Catering to both investors and developers, it offers regulated custody, staking, trading, and foundational infrastructure.
Launched in 2013, BitGo trailblazed with its multi-signature wallet. It’s notably the premier digital asset firm to cater solely to institutional clientele. 2018 saw the inception of BitGo Trust Company, a pioneering custodian designed for digital asset storage. This was followed by the establishment of BitGo New York Trust in 2021.
Swan, a powerhouse in Bitcoin financial services, offers an intuitive Swan app, making Bitcoin acquisition a breeze through instant and regular purchases. Swan IRA introduces a tax-smart strategy for Bitcoin retirement savings. Catering to high-net-worth individuals and corporations, Swan extends specialized service for substantial buys, treasury solutions, and Bitcoin perks for employees.