An alliance between BitGo and Swan Bitcoin unveiled an ambitious plan for a Bitcoin-only trust company, targeted at institutional investors in the United States. The joint venture, still awaiting regulatory approval, is expected to manage Bitcoin custody, administration, and management for beneficiaries.
As mentioned by Swan’s CEO, Cory Klippsten, the new venture intends to offer Bitcoin custody minus the risks of other altcoins under the same umbrella. Over time, clients have shown preference for a Bitcoin-only suite, focusing on the best custody utilizing Bitcoin’s unique attributes. However, as per Klippsten, the companies are still exploring acquisition options before moving for regulatory approval.
Now, BitGo, well known for offering digital assets security and custody, supports over 30 cryptocurrencies as detailed on its website. However, the contrast here is that Swan’s business solely focuses on Bitcoin. They facilitate users to invest through one-time and recurring purchase options, with record custody handled by Fortress Trust and Bakkt, while BitGo acts as a cold storage custodian.
The target of this new venture is mainly institutional investors like asset managers, pension plans, family offices, government and corporate treasuries. They aim to offer cold storage, fraud prevention and Anti-Money Laundering (AML), and Know Your Customer (KYC) protocols, in addition to other Bitcoin-related services. This highlights the increasing interest of institutional investors in the world’s biggest asset managers seeking regulatory approval for a Bitcoin exchange-traded fund (ETF).
Klippsten noted a high chance of several ETFs approval by 2024. This would usher a new wave of entrants seeking technologically proficient partners for a multitude of needs. However, analysts project the Securities and Exchange Commission may defer the decision until early 2024.
The CEO of BitGo, Mike Belshe, echoed that the companies have been in close collaborations for better custody models. He believes this venture would considerably push Bitcoin adoption by leveraging the unique capabilities of both companies.
In this evolving landscape of crypto assets, the merging of these two crypto giants is set to establish a new landmark. However, their move, much like the rest of the crypto space, is well-nestled between anticipation and apprehension, bolstered by the unpredictability of regulatory approval. Nevertheless, the willingness and readiness to adopt Bitcoin-focused services further validate the ever-growing influence of decentralized digital currencies.
Source: Cointelegraph
