BitGo Inc and Swan Bitcoin are collaborating to create the first Bitcoin-only trust company. This new firm will provide customers with Bitcoin custody without exposure to the crypto market. It will combine the regulatory compliance expertise of Swan with BitGo's cold storage technology. BitGo CEO Mike Belshe believes that separating custody and exchange is the best model for the Bitcoin sector. Swan projects a 50% increase in revenue, while BitGo recently raised $100 million in funding. BitGo has also canceled previous acquisition plans and initiated a lawsuit seeking compensation.
Our analysis of the situation
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In a thrilling twist to the crypto world, BitGo, the California-based crypto custodian, has teamed up with Swan Bitcoin, a renowned Bitcoin services firm, to create the first-ever Bitcoin-only trust company. This dynamic partnership aims to revolutionize the landscape of Bitcoin custody, offering users the chance to safeguard their precious digital assets without being exposed to the unpredictable ups and downs of the crypto market.
With unrivaled expertise in regulatory compliance and relentless commitment to fraud prevention, onboarding, and AML/KYC requirements, Swan Bitcoin is an ideal companion for BitGo's cold storage technology. This formidable combination of skills and knowledge positions the new trust company as a formidable player in the evolving Bitcoin ecosystem.
Mike Belshe, the CEO of BitGo, highlights the importance of separating custody and exchange, borrowing a page from the playbook of the well-established US financial industry. He emphasizes, "Our teams have worked closely together for nearly a year on stronger qualified custody models. Early in 2023, we recognized the opportunity to establish a Bitcoin-only custodian, combining the unique capabilities of each company and supporting the innovators that will be at the forefront of pushing Bitcoin adoption."
But hold on, there's more to this exciting collaboration than meets the eye. Despite the prolonged bear market that has plagued the Bitcoin arena, both BitGo and Swan Bitcoin have impressive achievements under their belts. Swan Bitcoin projects a whopping 50% increase in revenue, soaring above the $75 million mark by the end of this year. Meanwhile, BitGo recently secured an impressive $100 million in a successful Series C funding round, amassing a valuation of $1.75 billion. These funds are earmarked for expanding BitGo's already impressive suite of solutions, including their trusted custody and wallet services, as well as facilitating strategic acquisitions.
As for the mysterious investors, BitGo is keeping them under wraps for now, leaving us wondering who these newfound supporters are. It seems they hail from both the Asian and US markets and span beyond the confines of the crypto sector. With such diverse backing and proven traction in the industry, BitGo is setting the stage for an exciting future.
BitGo's steady ascent is evident in their remarkable growth, with a 60% increase in new clients between January and August. They have also experienced a substantial 20% rise in Assets Under Custody (AUC), demonstrating their unparalleled ability to win over the market. Additionally, BitGo boasts a staggering 40-fold increase in staked assets and an astonishing 200% surge in fiat custody, further solidifying their position as a market leader.
However, like any thrilling saga, BitGo has had its fair share of twists and turns. Earlier this year, they canceled their acquisition of rival company Prime Trust, raising eyebrows in the industry. The reasons behind the cancellation remain shrouded in mystery, but rumors suggest it may have been sparked by a cease and desist order from Nevada state regulators. That said, BitGo's resilience in the face of challenges is evident as they continue to forge ahead and seek new avenues for growth.
Amidst the roller-coaster ride, it is worth mentioning that Galaxy Digital Holdings had initially planned to acquire BitGo for a staggering $1.2 billion in 2021. However, the acquisition was ultimately terminated due to BitGo's failure to meet the necessary requirements, which led to BitGo firing back with a fierce $100 million lawsuit.
As the tides of the crypto market ebb and flow, BitGo and Swan Bitcoin are poised to make waves with their groundbreaking Bitcoin-only trust company. With their combined expertise, unyielding dedication, and unwavering belief in the future of Bitcoin adoption, this partnership promises to be a game-changer. So, crypto enthusiasts, prepare yourselves for a new era of secure Bitcoin custody as BitGo and Swan Bitcoin soar to new heights.
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Please note: This blog post has been crafted by a professional ghost writer.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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