BitGo is expanding its services outside of the United States and offering regulated cryptocurrency custody services in Europe.
BitGo To Provide Services in Germany and Switzerland
BitGo, the company, which is known for providing institutional clients with security and financial services for cryptocurrencies and similar digital products, has announced that it will be offering its services in Germany and Switzerland.
The entry of BitGo in the region will allow cryptocurrency exchanges in Europe, and other financial institutions that handle cryptocurrencies, to save their assets with the company. For a start, BitGo will offer its services in Germany and Switzerland, two of the leading cryptocurrency countries in Europe.
BitGo will operate as BitGo GmbH in Switzerland and will be a member of the Financial Services Standards Association (VQF). As a member of the VQF, BitGo GmbH will be regulated by the Swiss Financial Market Supervisory Authority (FINMA). In Germany, the company has been operating as BitGo Deutschland GmbH and is already offering custody services in the country. They are now set to apply for regulatory approval when the application stage starts in November.
While speaking about this latest development, CEO of BitGo, Mike Belshe, stated that they saw an increasing demand for custody services in Europe last year. It was clear the companies wanted to work with European based firms that were regulated within specific jurisdictions.
The company is starting with Switzerland and Germany due to its importance in the cryptocurrency world. Belshe added that both these countries are vital European centers for digital assets as well as for forward-thinking regulatory frameworks. Belshe went on to say that for clients of BitGo, regulatory compliance is a prerequisite. In addition, he stated that the company was highly impressed with the understanding and support of the regulators in Germany and Switzerland.
BitGo Has a $100 Million Insurance
BitGo has been one of the leading cryptocurrency custody companies in the world. In 2018, BitGo Trust Company was approved as a public South Dakota Trust Company by the South Dakota Division of Banking. The license allows BitGo to provide cryptocurrency custody services to institutional investors in the US.
At the moment, they provide custody solutions to significant Silicon Valley and Wall Street companies like Galaxy Digital Ventures, Goldman Sachs, Craft Ventures, Digital Currency Group, Redpoint Ventures, DRW Ventures, and Valor Equity Partners.
Last year, the company secured a $100 million insurance policy with Lloyd’s insurance. This allows them to cover cryptocurrency assets that are under their control. With insurance, BitGo is protecting its customers from issues, such as loss or damage to wallet private keys, account hacks, and insider theft.
While BitGo is one of the largest cryptocurrency custody solutions providers in the world, it receives fierce competition from the likes of Coinbase. Coinbase has been growing its custody market and targets some of the leading institutional investors within the US. Itsacquisition of Xapo has also seen Coinbase expand its custody business. With Xapo, Coinbase finds it more comfortable to store the cryptocurrency assets of investors.
Coinbase’s custody market has been growing, and the company holds more than $7 billion worth of digital assets for its customers.