BitGo, a blockchain security firm based in Palo Alto, CA, is no longer proceeding with the acquisition of Kingdom Trust, an asset custodian company, declaring it has decided to put up its own custodian.
The company is “seeking a charter to build BitGo Trust,” a “new, regulated, qualified custodian” to specifically handle digital assets, according to Medium.
The decision of BitGo to build its own custodian was centered on taking care of its customers’ needs. Marketing vice president Clarissa Horowitz told CoinDesk:
“We spent a lot of time over the course of this working with customers because ultimately that’s who we’re going to be serving and we realized they would be best served by a custodian who was entirely focused on their assets, so our focus has been to create a fully qualified independent digital custodian.”
Horowitz declared that they were “working very closely with regulators” but they hadn’t released a specific timeline for their project yet.
The company was already offering two asset management options to customers. First, are the different degrees of custodial services that the company has recently announced. Or by choice, the customers can directly control their assets.
Regarding her views about creating its own digital asset custodian specializing on crypto space, Horowitz stated: “I think it’s critical, I think the way that you hold digital assets [is different from how you’re] holding stock certificates.”
In a previous post, BitGo chief executive Mike Belshe asserted that “custodians make institutional investing possible by providing a level of checks and balances to keep money safe.”