Big Wall Street firms now have new options for storing bitcoin.
Announced Sunday, Palo Alto-based startup BitGo has unveiled a new suite of custodial services aimed at institutional investors who may be eying the market with interest.
The product launch notably builds on BitGo’s move to buy Kingdom Trust, a US qualified custodian of traditional financial assets, in January. But while that acquisition is still awaiting regulatory approval, that isn’t stopping BitGo from bolstering its offerings.
BitGo head of product Tracy Olson indicated that the launch – which finds BitGo stratifying its service into three offering tiers – is about framing the company as a full spectrum provider of security solutions, one that can now scale from consumer to institutional needs.
Olson told CoinDesk:
“We’re definitely seeing a lot of bigger names interested in digital currencies. But there are other customers like smaller hedge funds, they just don’t want to have to hold custody themselves. They’re looking to have the security and compliance and storage solutions that they can outsource to, and that’s what BitGo is really delivering.”
The three services tiers include “qualified custody,” in which BitGo offers secure storage and custody through Kingdom Trust; “institutional custody,” a solution that enables clients to manage wallets connected and disconnected from the Internet; and self-managed custody.
As such, Olson positioned the full offering as one that can appeal to the risk-tolerance of all types of clients, from those who want to set up and manage wallets themselves, to those that want others to manage the sensitive cryptographic keys required to access funds.
“These are really targeted at different market segments. The market is really demanding these three different solutions,” Olson continued.
As for customer details, Olsen indicated that BitGo would not reveal the total value of the assets it helps custody, though she said 15 percent of bitcoin transactions now occur through the company’s wallet offerings.
Still, that’s not to say there isn’t…