BitGo, the security startup recently announced that it is planning to expand its custody products and services for supporting 57 new Ethereum (ETH)-based assets. With this expansion, the wallet provider is planning to integrate the digital currency into the worldwide financial system and fulfill the demands for services that safeguard private keys.
BitGo to make cryptocurrencies usable in regulated economy
These private keys include the alphanumeric strings that are used as a password for virtual assets. Once these keys are lost they cannot be recovered. According to the website of BitGo, the expansion will make the virtual currencies usable for business in a regulated economy. The website says that its customers including CME Group and Royal Mint execute the transaction of over $10 million every month.
This move by the industry leader known for managing wallets at cryptocurrency exchanges indicates that the competitive landscape in the blockchain security sector is now undergoing a big change. Although BitGo has emerged as a leader in the field, its services have always been restricted to larger protocols such as Ethereum (ETH) and Bitcoin (BTC).
Founded in 2013, BitGo became the first wallet provider in February 2015 to develop a theft insurance policy. As per the terms, the customers will have to pay a flat 1% fee to get coverage of up to $250,000.
BitGo is first to add Ethereum tokens
The Californian blockchain company is one of the few startups to introduce services related to institutional custody. As of now, three other companies including Coinbase, an American exchange provider, Smart Valor, the Swiss startup and Nomura, a Japanese bank have rolled out licensed storage solutions for the crypto market. However, BitGo is the first to add Ethereum tokens to its security platform.
According to Benedict Chan, the CTO of BitGo, the demand for custody services for alternative digital assets have increased. He stated, “These institutions, they generally don’t want to self-manage their coins. They are looking for someone that can support multiple coins.”
The product marketing Vice President of BitGo, Robin Verderosa said that his company is now trying to get a BitLicense in the city of New York and also a custodian license from South Dakota. The company aims to offer more alternatives in custodial services and add around 100 or more virtual currencies by the end of December 2018.