BitGo and Swan Bitcoin Unveil Plans for First Bitcoin-Only Trust Company in the US
Summary:
BitGo and Swan Bitcoin have revealed plans to establish the first Bitcoin-only trust company in the United States. Pending regulatory approval, the joint venture will provide Bitcoin custody, administration, and management services. Targeting institutional investors, the company aims to offer various Bitcoin-related services and cater to the growing demand for qualified custodians in the crypto market.
BitGo and Swan Bitcoin announced their plans on September 15 to establish the first Bitcoin-only trust company in the United States, pending regulatory approval. The joint venture aims to provide services such as Bitcoin custody, administration, and management exclusively, addressing the demand for a Bitcoin-focused software and services stack. The companies are currently engaging with state regulators but have not yet filed for regulatory approval. Cory Klippsten, CEO of Swan Bitcoin, mentioned that they are also considering acquisition options. BitGo offers digital assets security and custody for over 30 cryptocurrencies, while Swan Bitcoin focuses solely on Bitcoin investment, partnering with Fortress Trust and Bakkt for custody. Upon regulatory approval, the new entity aims to target institutional investors and offer various Bitcoin-related services, including cold storage, fraud prevention, and KYC protocols. Institutional investors in the US crypto market have been growing rapidly, particularly in anticipation of the approval of a spot Bitcoin ETF. Notable financial institutions like Bank of New York Mellon and Deutsche Bank already offer cryptocurrency custody solutions. Swan Bitcoin's CEO expects the approval of multiple ETFs in 2024, leading to an influx of new market participants seeking reliable Bitcoin partners. The SEC, however, has been delaying decisions on spot Bitcoin products, with analysts predicting further delays until early 2024. The CEO of BitGo, Mike Belshe, highlighted that their collaboration for establishing a Bitcoin-only custodian has been a year in the making, with the goal of supporting Bitcoin adoption.
Published At
9/15/2023 5:52:40 PM
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