In anticipation of regulatory permission, BitGo and Swan Bitcoin announced their intention to establish the first bitcoin-only trust business.
Swan‘s industry-leading capabilities in onboarding, fraud prevention, AML/KYC, and audits for regulated environments will be combined with BitGo’s best-in-class bitcoin cold storage technology and regulatory compliance expertise in the new joint venture.
BitGo CEO Mike Belshe stated:
“We believe the best model for the Bitcoin industry is the same battle-tested model that has been part of the US financial industry for over a century: the separation of exchange and custody. 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.”
Cory Klippsten, Swan’s CEO, expressed his views on the recent joint operation, highlighting the need to create a specialized bitcoin-centric software and services stack, driven by feedback from major clients and partners. He emphasized the need for developing a custodial solution that capitalizes on Bitcoin’s distinctive qualities without the complications of securing various alternative “cryptocurrencies” alongside it. The aim is to contribute to the establishment of a dedicated bitcoin ecosystem, away from speculative elements in the industry, in order to foster innovation in custodial services.
BitGo has been around for ten years, serving as one of the biggest bitcoin custodians in the world. The business offers $250 million in insurance to guard against loss. BitGo also employs multisignature algorithms alongside other security procedures, and provide custodial solutions for organizations including Bitstamp, Swan, and the Government of El Salvador.
Swan, the other side of this venture, is dedicated to solving the intricate problem of custody, which they see as the most difficult problem bitcoin owners face. After purchasing Specter Solutions in 2022, the group has been developing sophisticated yet approachable custody solutions that are adaptable to a variety of client needs. Swan Custody is scheduled to present its first product on October 5.