Crypto asset custodian BitGo adds support for Dash, Stellar to follow soon
The Palo Alto, California-based crypto wallet and blockchain security firm BitGo that helps investors store cryptocurrency holdings, is adding compatibility with two new digital coins, according to a report by Fortune.
Starting from Friday, BitGo said it will enable customers to keep Dash, an open source which was forked from the Bitcoin protocol in digital wallets provided by the company. In the coming weeks, BitGo is also planning to add Lumens, a cryptocurrency which is a native asset of Stellar network.
Mike Belshe, BitGo’s founder and CEO, said his company would add the pair of coins because they “offer some advances, particularly around payments.” He revealed the news on this week’s Balancing The Ledger, Fortune’s video series on the intersection of finance and technology.
Dash is the abbreviated form of "digital cash" which is used to make instant, private payments online or in-store using secure open-source platform hosted by thousands of users around the world.
Dash features speed improvements that make “instant payments” possible, Belshe said. “They also have some privacy payments.”
Speaking about Lumens, Belshe added, “Stellar’s Lumens, on the other hand, are focusing on global payments more for consumers.”
Currently, the trust company offers support for 85 cryptocurrencies through its custody product, including Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and Zcash.
In an interesting development last month, BitGo received the green light by the South Dakota Division of Banking to start crypto custody services, BC Focus reported.
At the launch of the crypto custody offering, BitGo co-founder and CEO Mike Belshe said:
"This is the missing piece for infrastructure — it's a treacherous environment today. Hedge funds need it, family offices need it, and they can't participate in digital currency until they have a place to store it that's regulated."
“Traditional custodians don’t have experience handling cryptocurrency. Exchanges that double as custodians present a conflict of interest and raise regulatory concerns. BitGo Trust Company is a qualified custodian, and therefore the only custody offering that delivers the highest levels of both security and regulatory compliance,” he added.
BitGo is not the first cryptocurrency company to offer custodial services. There’s an ongoing race to attract institutional investors. Coinbase and Gemini have both launched their own custody solutions in a bid to attract institutional investors to the market. And as some reports suggest, leading financial institutions such as Goldman Sachs and Northern Trust are also reportedly planning to launch similar services.
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