BitGo adds 57 Ethereum Tokens: Largest-Ever Custody Service Expansion
The blockchain security startup BitGo told sources that they will expand its suite of custody products and services to support 57 new Ethereum assets. To safeguard private keys – the alphanumeric strings that act as passwords for crypto assets, this advancement is made. The advancement majorly aims to increase the security in the blockchain sector.
The security startup is not the only one in the industry to debut institutional custody services. Swiss startup Smart Valor, Japanese bank Nomura and U.S. exchange provider Coinbase are just three of the companies giving out licensed crypto storage solutions. They have been managing wallets at crypto exchanges ever since they started in 2013. According to sources BitGo is handling bigger protocols like bitcoin and Ethereum. Addition of Ethereum tokens has brought a surge in the demand for custody solutions for alternative crypto assets.
Benedict Chan, CTO of BitGo said,
“These institutions, they generally don’t want to self-manage their coins. They are looking for someone that can support multiple coins.”
Sources report that VP of product marketing, Robin Verderosa, said the security firm is now seeking to take a BitLicense in New York and a qualified custodian license in South Dakota. The security firm majorly aims to provide more options in custodial services and by the end of 2018 more than 100 cryptocurrencies will be added.
Verderosa said courting institutional investors has become BitGo’s priority, stating,
“What we’ve learned is that they’re interested in investing in a basket of coins and tokens that kind of help hedge the market and give better returns.”
BitGo is taking necessary measures to ensure the quality of its service given the risks inherent in dealing with smaller cryptocurrencies. BitGo will include those offered by Kin by the chat messaging app Kik, several native tokens for decentralized crypto exchanges and the blockchain identity crypto Civic, a startup BitGo began experimenting with in 2017.
Product manager Isaac Eleftheriadis is heading an 11-person BitGo team focused on rising cryptocurrencies and tokens. According to Eleftheriadis every token added in this first batch was explicitly requested by BitGo’s institutional clients. If a demand for custody options arises, the team will research about the token to ensure its issuers are reputable.
Arianna Simpson, former BitGo employee and current founder of the crypto investment fund Autonomous Partners explained,
“An added challenge for custodians who are coming to market is figuring out how they will handle issues like airdrops, hard forks, etc, and which ones they will support. This presents real technical challenges in addition to regulatory and tax-related ones.”
“There’s been cases were customers asked us to support their ERC-20 token, They don’t want to do the ICO yet until all their tokens can be held by BitGo,” Eleftheriadis said.
Image via Shutterstock
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