BitGo Reaches Preliminary Agreement to Buy Prime Trust

BitGo, a cryptocurrency custody company, has entered into a preliminary agreement to acquire Prime Trust, another regulated crypto custody expert based in Nevada.

BitGo Reaches Preliminary Agreement to Buy Prime Trust

BitGo, a company specializing in cryptocurrency custody, has reportedly reached a preliminary agreement to acquire Prime Trust, another crypto custody specialist regulated in Nevada, as per information from two insiders. However, the deal is still subject to regulatory approval, according to one source.

Speculation had circulated online regarding Prime Trust potentially facing bankruptcy, but no financial details of the agreement were disclosed by another source.

BitGo declined to comment, while Prime Trust did not respond to comment requests, but a representative confirmed the sale to the Wall Street Journal. BitGo later confirmed the acquisition of Prime Core Technologies, the parent company of Prime Trust, in a blog post.

The move was hailed as a significant advancement for the industry by Prime Trust’s Interim CEO Jor Law, who emphasized the combined company’s broad range of products and services. BitGo CEO Mike Belshe stated that the acquisition would enhance their trusted solutions and serve their expanded customer base.

The demand for secure storage and custody solutions for cryptocurrencies, especially among institutional and high net worth clients, has driven the growth of digital asset custody, resulting in high valuations for such firms.

The U.S. Securities and Exchange Commission (SEC) has also taken an interest in custody matters and proposed rulemaking on the subject. Prime Trust, based in Las Vegas, raised $107 million in funding in 2022 but faced challenges, including downsizing its workforce and discontinuing operations in Texas. Cohen & Company Capital Markets served as the financial advisor to Prime Trust.

About Prime Trust

Prime Trust is a prominent crypto custody specialist based in Las Vegas, Nevada. With a strong emphasis on providing secure storage and safekeeping solutions for cryptocurrencies, Prime Trust has established itself as a trusted player in the digital asset custody industry.

The company has been regulated in the state of Nevada, ensuring compliance with relevant laws and regulations. Prime Trust’s dedication to offering a breadth of products and services has contributed to its reputation as a reliable custodian for institutional customers and high net worth individuals.

Despite facing some challenges, including downsizing its workforce and discontinuing operations in certain regions, Prime Trust has attracted significant attention and funding, demonstrating its potential for growth and innovation in the crypto custody space.

About BitGo

BitGo Inc. is a reputable digital asset trust and security company. Co-founded in 2013 by Mike Belshe and Ben Davenport, the company gained significant attention in 2021 when Galaxy Digital announced its intention to acquire BitGo for $1.2 billion. However, due to the downturn in the crypto market, the acquisition was ultimately canceled in 2022. Despite this, BitGo continues to operate as an independent entity.

One of the notable services provided by BitGo is a multisignature bitcoin wallet, which enhances security by distributing keys among multiple owners. Typically, these wallets consist of three keys, with BitGo holding one and the remaining two held by the wallet’s owner.

BitGo offers various wallet configurations, including hot and cold setups, as well as custodial and non-custodial options.

Furthermore, BitGo serves as the exclusive custodian for bitcoin deposited by individuals seeking to obtain Wrapped Bitcoin (WBTC), a tokenized version of bitcoin that can be traded on the Ethereum blockchain.

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