Retired Richard J. Corcoran Brought Into Institutional Crypto Market By BitGo
Richard J. Corcoran has been involved in the trust company industry for years before he ultimately retired. However, the offer to come on board with BitGo as their new head was apparently too good to stay out any longer. The announcement came on Thursday that Corcoran would be taking on the CEO position with a new division at the platform called the BitGo Trust Company. His role will involve watching over billions of dollars’ worth of assets, though this entity is just one of the many crypto custodians found in the industry that is working to go after hedge funds, mutual funds, and family offices.
In a statement to CoinDesk, Corcoran said,
“I understand the regulatory requirements and how to comply with those standards and maintain compliance as we serve customers.”
He also commented that they’ve already begun the on boarding of big-ticket clients.
BitGo’s license to become a trust company was provided in South Dakota, a major advantage to Corcoran, who has plenty of experience with their demands. With this license, the firm has expanded their limits on how much crypto that institutional investors can store with them. Before now, Corcoran had just retired from a bank in Sioux Falls, First National, in 2016. With 25 years behind him, he met BitGo’s CEO.
Corcoran joked about the serendipitous meeting, sarcastically calling it a “setup.” He also said,
“We met through the attorney representing BitGo who recommended that Mike talk to me about the trust industry in South Dakota in general.”
In the United States, institutional investors have to use qualified custodians to take care of their assets, based on the current laws in place. Crypto specialists have proven their place as a safe custodian to hoard these assets, even though banks and broker-dealers are qualified in the traditional banking world.
Speaking on South Dakota’s performance, Corcoran said
“It is, if not the top, one of the top trust jurisdictions in the country, and that’s because of our very favorable trust laws and the manner in which we monitor these laws.”
“When I came here in 1979 there were a total of 12 trust institutions; now there are over 100 independent trust companies alone here.”
His time in this industry in South Dakota led him to serve on the Governor’s Task Force on Trust Administration and Reform .
Corcoran noted that there are certain basic requirements in South Dakota for a chartered trust company. He has plenty of experience with these types of constraints, considering his experience with rafting multiple statutes. He is optimistic, however, saying,
“From a banking standard view, I think we would be considered well capitalized.”