BitGo Prime Trust Deal Falls Through

BitGo Prime's plans to expand into the US market through a partnership with Prime Trust fell through.

The deal, which was expected to provide BitGo Prime with a banking partner, never materialized.

The partnership was announced in 2020, but details about the agreement were scarce.

The companies never publicly disclosed the terms of the deal.

The collapse of the deal is a setback for BitGo Prime, which has been working to establish itself as a major player in the cryptocurrency market.

It's unclear what the future holds for BitGo Prime's US expansion plans.

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BitGo has signed a non-binding letter of intent to acquire Prime Trust, a fintech infrastructure provider. This move aims to bring business continuity, long-term stability, and regulated, secure solutions to Prime Trust's clients.

If the deal goes through, Prime Trust's infrastructure will "map over 1:1" with BitGo's services, adding another trust company and crypto IRA fund. This acquisition makes BitGo the first global custodian to have a presence in Nevada.

The acquisition is subject to regulatory approval and further details are yet to be disclosed.

BitGo, a cryptocurrency custodian, cancelled its acquisition of rival Prime Trust after a preliminary agreement was reached earlier this month. This decision was made after considerable effort and work to find a path forward with Prime Trust.

Prime Trust has had a rocky journey in recent months, replacing its CEO in November and laying off around a third of its staff in January. The firm also ceased operations in Texas and its subsidiary Banq filed for bankruptcy last week.

The cancellation of the acquisition comes as Prime Trust is losing clients and deposits to competitors, amid mounting concerns over its business. A source at one of its former clients told CoinDesk that the firm has been struggling to stay afloat.

Here's a brief summary of the key players involved:

Stably and Coinmetro, two crypto exchanges, have also been affected by Prime Trust's struggles. Stably told customers that Prime Trust was halting all deposits and withdrawals, while Coinmetro said it was unable to process new U.S. dollar transactions due to Prime Trust's suspension of USD deposits and withdrawals.

The cancellation of the acquisition has left many wondering what's next for Prime Trust and its clients.

BitGo, a leading cryptocurrency investment services provider, has signed a non-binding letter of intent to acquire Prime Trust, a fintech infrastructure provider. This acquisition aims to bring business continuity and long-term stability to Prime Trust clients.

Prime Trust's Nevada Trust Company will join BitGo's network of regulated trust companies, which already includes entities in South Dakota, New York, Germany, and Switzerland. This expansion will enhance BitGo's presence and regulatory reach.

Prime Trust's API infrastructure and exchange network will "map over 1:1" with BitGo services, reinforcing BitGo's existing services, including custody, liquidity, settlement, and compliance capabilities. This integration will provide a more secure and sustainable future for the digital asset landscape.

The acquisition comes as the United States Securities and Exchange Commission has proposed rule changes that would make it harder for crypto companies to act as custodians of their customers' funds. This acquisition could be a strategic move by BitGo to stay ahead of these changes.

Here's a summary of the key benefits of the acquisition:

BitGo Business is a comprehensive platform designed to help institutional investors manage their digital assets. It offers a suite of tools and services tailored to meet the needs of large-scale investors.

BitGo's institutional-grade custody solution provides secure storage and management of digital assets, with features like multi-signature wallets and insurance coverage.

The platform also offers a variety of reporting and analytics tools, giving users real-time visibility into their digital asset holdings.

BitGo Business is designed to be highly customizable, allowing institutions to tailor the platform to their specific needs and requirements.

This flexibility is made possible by BitGo's modular architecture, which enables institutions to select only the tools and services they need.