BitGo and Swan Unveil Bitcoin-Only Trust Company

Crypto Industry Develops Bitcoin-Only Trust Company

BitGo and Swan Bitcoin disclosed on Sept. 15 that the United States may soon have a Bitcoin-only trust company, pending regulatory approval. The joint venture will offer services such as Bitcoin (BTC) custody, administration and management for the benefit of its clients. Cory Klippsten, CEO of Swan, said the solution intends to provide Bitcoin custody without the risks of having other altcoins under the same roof.

“For years, we’ve heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only software and services stack that is focused strictly on the best custody that leverages Bitcoin’s unique features,” Klippsten said.

The companies are in contact with state regulators about the plans, but have not yet filed for regulatory approval. Klippsten revealed that they are currently evaluating acquisition options first.

The crypto industry is developing rapidly, and the new venture by BitGo and Swan Bitcoin is one of many examples. With the launch of this Bitcoin-only trust company, the industry is one step closer to achieving its goal of providing a secure and reliable platform for crypto users.

Crypto-Related Services for Institutional Investors

BitGo, which supports over 700 cryptocurrencies, provides digital asset security and custody, according to its website. In contrast, Swan’s business is solely dedicated to Bitcoin, allowing users to invest in Bitcoin via one-time and recurring purchases, with custody of records held at Fortress Trust and Bakkt, while BitGo acts as a cold storage custodian.

The new venture is targeting institutional investors, such as asset managers, pension plans and family offices, as well as governments and company treasuries. It will offer a variety of services related to Bitcoin, including cold storage, fraud prevention, Anti-Money Laundering and Know Your Customer protocols.

The crypto space has become increasingly popular among institutional investors in the U.S., especially as the world’s biggest asset managers seek regulatory approval for a spot Bitcoin Exchange Traded Fund (ETF). Several large Wall Street players, including Bank of New York Mellon and Deutsche Bank, offer cryptocurrency custody solutions to institutional investors.

“We believe there is a high likelihood that several ETFs are approved in 2024 and thus a new round of entrants to the Bitcoin market seeking mature, reputable, technologically proficient partners for a range of needs,” said the CEO of Swan’s. The Securities and Exchange Commission has delayed decisions on the spot Bitcoin product, and analysts predict the regulator may postpone a decision until early 2024 as deadlines approach.

In 2023, Mike Belshe, CEO of BitGo, noticed the potential of creating a Bitcoin-only custodian, and since then both teams have been working together to produce stronger qualified custody models. With the combined capabilities of each company, they are supporting the innovators that are taking Bitcoin adoption to the next level with technologies such as “crypto.com”, “web 3.0 explained”, “FTM Crypto”, “Hbar Crypto”, “Media Network Crypto”, “Voyager Crypto Latest”, “Mana Crypto”, “Tectonic Crypto Today”, “Hex Crypto”, and “Pi Crypto”.