Highlighting Importance of Crypto Custody, BitGo CEO Says Assets Shouldn’t Be Held by Exchanges
Preserving and protecting cryptocurrency funds in a digital wallet is fairly common, and there are many investors that end up choosing hardware wallets as a further level of protection. While it is not uncommon for investors to hold their assets at an exchange, a recent interview with CEO Mike Belshe of BitGo may make investors reconsider.
The interview, hosted by Cheddar, took a moment with Belshe to talk about the custody of cryptocurrency in the industry, and why it is so important. As he puts it, the only entities that should hold on to cryptocurrency at all should be a professional custodian, and never a crypto exchange.
U.Today has said that BitGo offers “the most comprehensive insurance offering” that the market provides, considering that they will cover up to $100 million in losses. Belshe believes that this opportunity is “a huge thing for crypto,” which he also stated in the interview with Cheddar. With everything from physical vaults to software, their biggest priority is keeping their clients’ assets safe.
Though there seem to be many exchanges that will hold the private keys of users, Belshe says that they “do not hold assets.” A regulated custodian is an uncomplicated way to protect funds, and BitGo has already begun the world needed to set up the framework for the institutional investors that the market expects.
The recent QuadrigaCX saga was also up for discussion with Belshe, who expressed his belief that the team is simply creating a narrative to act as a
“fable to cover something up.”