'Unprecedented' Institutional Demand for Bitcoin: Bitgo's Custodied Assets Top $16 Billion, No Paypal Deal
Bitgo’s assets under custody have surpassed $16 billion. The company says it is seeing “unprecedented interest from institutional investors,” resulting from the economic impact of the coronavirus pandemic and the recent bitcoin bull run. Paypal was also rumored to be in acquisition talks with the company.
$16 Billion in Cryptocurrencies Under Custody
Bitgo announced Wednesday that it has hit a new milestone of more than $16 billion in digital assets under custody. The company noted that the achievement further validates institutional investor interest in cryptocurrency, elaborating:
As institutional interest in cryptocurrencies continues to surge, top investors are seeking institutional-grade security and financial infrastructure for custody, trading and lending of their digital assets.
Bitgo detailed that it currently accounts for more than 20% of all on-chain Bitcoin transactions, processing over $15 billion in monthly volume and supporting over 300 coins and tokens. The company is backed by Goldman Sachs, Craft Ventures, Digital Currency Group, Drw, Galaxy Digital Ventures, Redpoint Ventures, and Valor Equity Partners. Bitgo says it has over 400 clients spanning 50 countries, including Bitstamp, Nexo, and Pantera.
Once a simple cryptocurrency wallet provider, Bitgo has expanded its business into providing crypto financial services — including liquidity, custody, and security solutions — to institutional investors. In 2018, the company launched its custody service, Bitgo Trust Company. This year, it launched Prime Trading and Lending as well as Portfolio and Tax services.
Bitgo CEO Mike Belshe commented that his company “set out to deliver trust and pave the way for mainstream investment in digital assets,” adding:
We’re seeing unprecedented interest from institutional investors as a result of the pandemic’s economic impact, as well as bitcoin’s extraordinary performance.
In October, payments giant Paypal was rumored to be in talks to acquire Bitgo. However, according to a source cited by Fortune, that deal has fallen through and Paypal is now considering other companies in the crypto space.
What do you think about Bitgo having $16 billion in digital assets under custody? Let us know in the comments section below.
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