A joint report by BitGo and Swan Bitcoin revealed plans to launch the first-ever Bitcoin-only trust company. The proposed Bitcoin-only trust seeks to provide custodial service at minimum exposure to crypto assets.
In the September 15 report, BitGo and Swan revealed that the new venture is awaiting regulatory approval to commence operations. The report indicates that the new company will have similar characteristics as a trust firm. It implies that the proposed Bitcoin-only trust company will facilitate customers’ custodial, management, and administration services.
Features of Bitcoin-Only Trust Company
Additionally, the new company will leverage the expertise of the two companies. The BitGo team will provide Bitcoin storage technologies and focus on improving compliance of the new venture.
The Swan team will leverage their expertise in talent acquisition, anti-money laundering protocols, and Bitcoin-related knowledge. An announcement conveyed by the chief executive of Swan Cory Klippsten stated that the new venture would provide Bitcoin custodial services with less exposure to other digital assets such as altcoins.
The CEO admitted that the Bitcoin-only service has been in high demand for the past few years. Klippsten revealed that BitGo and Swan have been discussing with the regulators concerning launching the Bitcoin-only trust company.
The executive stated that BitGo and Swan were currently reevaluating suitable acquisition alternatives before launching the new business. Afterward, Klippsten and his team will seek to meet the regulatory requirement to establish the expected Bitcoin-only trust company. The primary objective of establishing the new venture is meeting the needs of institutional investors, including asset managers in private and public companies. According to BitGo, the new company will offer cold storage services, effective anti-money laundering (AML), and Know Your Customers (KYC) protocols.
BitGo Partners with Swan
The executive vowed that BitGo and Swan plan to create a dedicated ecosystem through innovation to redefine the Bitcoin sector and expand custodial products. In support of this, the chief executive of BitGo, Mike Belshe, admitted that his team has been focusing on developing the crypto custodial sector for about a year. The CEO stated that the idea to establish the Bitcoin-only custodial was first launched in early January.
After evaluating the viability of establishing the Bitcoin trust custodial, the BitGo and Swan teams agreed to work together to support innovation and push for mainstream adoption of Bitcoin.
Despite the bearish market structure, BitGo and Swan has managed to solidify their market performance in the crypto sector. A review of the company website demonstrates that BitGo supports over 700 tokens and offers custodial services for virtual assets.
Recently, BitGo generated around $100 million in fundraising, propelling the firm value to reach $1.75 billion. On the other hand, Swan has witnessed a significant increase in revenue growth from January this year. The Swan Group has provided customers with Bitcoin products and services for years.