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BitGo Crypto Custody Service Adds New GUSD and USDC Stablecoins Options to Impress Institutional Investors
BitGo, a crypto custodian company, has recently added the support for a new asset, which will be the 101st asset of the company. The decision was mostly made to offer a wide spectrum of choices in an effort to please institutional investors.
Now, BitGo is starting to handle the Gemini Dollar (GUSD), which follows another stablecoin, Circle’s USD Coin (USDC), which was added on November 6. Both of these stablecoins were mainly designed to maintain parity with the USD and were additions of the company to have more stablecoins. Before then, BitGo had MakerDAO’s DAI, Paxos Standard (PAX) and TrustToken’s TrueUSD (TUSD).
Stablecoins Are The Trend of 2018
This new asset class, the stablecoins, are a representant of the biggest trend of 2018 among cryptos. With the bear market going full ahead, stablecoins have introduced a constant aspect in the new industry during volatile periods.
BitGo’s product technical manager, Isaac Elefheriadis, has told the media that this new stablecoin was added to the company because there was a high demand for it among exchange platforms.
According to the records of the company gathered with its internal API, from October 9 to November 9 the clients of the company have submitted over 150,000 requests for TUSD and over 137,000 for USDC. DAI also had almost 29,000 requests. The manager has affirmed that the investors are no looking for a new type of coin that would help them when they need to store their money.
The company has affirmed that it is going to keep adding new assets to the platform and that it will also add new stablecoins if it believes that there are more worthy assets that should be put on the platform.
Meltem Demirors, the founder of Athena Capital and the chief strategy officer at CoinShares, has affirmed that people are trying to find new revenue streams and this growing type of asset will help the company to extend its business model more.
According to him, as originally reported by Coindesk, Wall Street institutions are interested in the assets, but they are also concerned with how the volatility can harm the cryptos’ ability to act as a store of value.
Because of this, we have seen a sharp incline in the demand for this type of crypto asset. BitGo’s vice president of marketing, Clarrisa Horowitz, has told the media recently that this year was the year that the company was trying to reshape its model to become a more profitable business and to help its clients in a better way.
During 2018, the company has more than doubled its staff, which is now composed of more than 100 employees and went from 8 to 101 different assets in less than a single year. The company also has more than 300 institutional clients now. Horowitz has affirmed that the company is also transitioning in technology and that it wants to be a full financial services company.
While institutional investors already use established brands like Fidelity and the Intercontinental Exchange (ICE), as well as the New York Stock Exchange, the company is trying to carve a place in some of this market.
Only time will tell how successful the strategy of the company will end up being, but it is definitely looking good at the moment.
BitGo believes that these new assets are giving investors a new way to manage their risk and that this will open the space for the institutional investors to come in time. This way, the strategy of the company will work if it is able to seduce these investors which use more traditional companies now.
Crypto Custodian BitGo Could Have Exaggerated Insurance Coverage Using Ambiguous Language
Crypto Custodian BitGo Could Have Exaggerated Insurance Coverage Using Ambiguous Language
There are some reports that claim that BitGo has been exaggerating its insurance coverage by using “ambiguous language” when releasing public announcements. This is according to one of the underwriters behind the company.
Everything started with a press release published by the company explaining that one of the risks covered by a group of 10 Lloyd’s of London underwriters were “third-party hacks.” According to one of the 10 members of this group, this was misleading.
In a recent report released by CoinDesk, the underwriter explains that the company implies the policy covered hacks of online wallets. However, the policy just covers theft or loss of assets that are held in cold storage wallets.
The underwriter mentioned about it:
“The BitGo policy does NOT provide any cover for remote “third party hacks.” Cover is only provided for “storage media” in secure storage. In other words, there is no cover for any loss or sensitive information (private keys) resulting from the generation, transportation or transaction phases of the private keys’ life cycle.”
BitGo said to CoinDesk that they used a clear and specific language rather than an “ambiguous” wording as the underwriter said. Moreover, the firm said that Lloyd’s reviewed the statement and approved this specific wording.
Cryptocurrency exchanges have been hacked on several occasions by attackers that had access to online wallets. The best way to store funds, for both exchanges and individuals, is by using cold storage wallets such as hardware devices not connected to the internet.
BitGo mentioned the lead underwriter, AMTrust. However, the underwriter that marked the “ambiguous” wording is one of those that have a smaller exposure in case of a hack. Indeed, the lead underwriter will be offering the first $10 million of losses and the rest of the capital will be provided by the following overwriters for a smaller price.
Hence, it is important to understand that BitGo is protected against offline wallet hacks rather than online wallet attacks. The underwriter explained that he would be meeting with Lloyd’s in order to have some consistency in their approach to the media.
BitGo To Integrate Custody Services For Blockchain’s Capital BCAP Security Token
BitGo Adds Support For Blockchain’s Capital Security Token BCAP
BitGo, a prominent crypto trust company, is now adding custodian support for the token of Blockchain Capital, BCAP. According to Coindesk, which reported on this story, the company affirmed that clients could now store their BCAP assets in BitGo.
Customers will be able to store their services now using the multi-signature wallet of the company for Ethereum-based ERC20 tokens. It is important to remember that BitGo is a fully regulated platform, so you will not have any issue by storing securities in it.
Brad Stephens, the co-founder of Block Capital, has talked about why his company decided to partner with BitGo for custody. According to the CEO, the goal was to ensure that the custody solution would be completely secure, compliant with the law and extremely easy to manage even for investors who were not very tech-savvy.
BCAP tokens were launched back in 2017, just when the market was starting to get interested in cryptocurrencies. Each token is worth shares of the Blockchain Capital III Digital Liquid Venture Fund. This way, the holders of the tokens are able to get exposure to these investments without actually having to invest directly in them.
One of the advantages is that the tokens are able to be sold on secondary markets and, because of this, they are more liquid than actual shares of the companies. Since the beginning of 2019, a regulated new Alternative Trading System was designed by the company in order to make it even easier for people to trade their BCAP tokens properly.
According to Chief Technology Officer Ben Chan, security tokens are getting increasingly important as an asset class for institutional investors, so it is important to offer them a good service and this is what BCAP offers.
At the moment, BitGo offers support for over 100 different cryptos and ERC20-based tokens. The company has recently affirmed that it holds a total of over $2 billion USD in assets for its clients.
Securities are really getting very popular in the market at the moment. Recently, DX.Exchange, an Estonian company powered by the technology of Nasdaq, has announced that it would hold its own security token offerings. The company will allow investors to use cryptocurrencies to buy securities.
According to the current reports, people will be able to use four different currencies to do it: Bitcoin, Tether USD, Ripple, and Ethereum.
Another platform focused on securities, AXA XL, has recently been just launched and its goal is to cover equity crowdfunding and security token offerings, as well as to protect the investors who want to dip their toes in this new market of digitized securities.
BitGo Crypto Custodian CEO Shares Insight Into Fidelity And Goldman Sachs' Bitcoin Ecosystem Entrance
BitGO CEO Talks About Fidelity, Goldman Sachs and Their Crypto Custody Plans
The CEO of BitGo, Mike Belshe, has recently talked about his expectations for Goldman Sachs’ and Fidelity’s crypto custody plans and affirmed that the company welcomes the competition. BitGo, in case you are not familiar with the company, has dominated the crypto custodian shop space for a while now.
However, these new companies entering the scene may be a threat to BitGo, as reported by The Block Crypto recently.
Belshe is not afraid of them, though. According to him, these companies would bring billions of dollars into the industry and this could cause the Bitcoin market to spike in price, so it is not necessarily a bad idea for these companies to enter the market, as the effects of their presence could be very positive for all the involved in the market.
According to the Block Crypto, Goldman Sachs is exploring custody solutions for a while now and the crypto media outlet has affirmed that Goldman Sachs and BitGo are having conversations and will maybe have a partnership.
This can seem very odd as the companies would be direct competitors, but according to the CEO of BitGo, it is not. He said during the interview that he is asked the question all the time as people speak why would he help a direct competitor.
He rebuked the so-called threat by saying that BitGo is a veteran in the crypto world and that the company is simply not afraid of other companies. These other companies, the CEO affirms, would not fully understand the market so quickly that they could become a threat. So, while a partnership is not something that is certain so far, it could happen in the future.
The same, he believes, goes for Fidelity, which was also reported to be interested in the crypto market recently. Belshe said that they are “smart people” and that they will move slowly in the industry to feel the risk before they go all in. They may have a bigger market cap, but they do not have the expertise in the market.
Because of this, in these both cases, he believes that the companies will start small and that BitGo’s future is secure.