BitGo and Prime Trust's partnership has come to an end, marking a significant development in the digital asset custody space.
The partnership was a key collaboration between two major players in the industry, aiming to provide institutional-grade custody solutions for digital assets.
In a surprising move, the partnership was terminated, leaving users and investors wondering about the implications of this change.
BitGo and Prime Trust Part Ways
BitGo announced the termination of its acquisition of Prime Trust on an unspecified date following the June 8th, 2023, announcement.
The acquisition was expected to bring business continuity, long-term stability, and regulated, secure solutions to Prime Trust’s clients.
The acquisition would have combined BitGo’s strong balance sheet, operational standards, and credibility with Prime Trust’s world-class infrastructure, fintech API, and network of banking partners and payment rails.
Mike Belshe, CEO and Co-Founder of BitGo, expressed excitement about the landmark transaction, stating that it would lead to a greater shift in the digital asset landscape toward a more secure and sustainable future.
The acquisition was seen as a significant enhancement for the industry, as it would have enabled the company to service the combined customer base.
However, the specific challenges that led to the termination of the acquisition are not disclosed.
In a statement, BitGo expressed regret over the decision and acknowledged the hard work and dedication of the Prime Trust team.
BitGo remains committed to its mission of delivering trust in digital assets and will continue to explore opportunities to expand its offerings and capabilities.
The termination of the acquisition is a setback for BitGo’s mission to deliver trust in digital assets.
Prime Trust may need to explore other paths to growth, such as partnerships or collaborations with other companies in the industry.
Cease & Desist Order
In 2020, BitGo, a digital asset custody firm, received a Cease and Desist Order from the New York State Department of Financial Services (NYDFS) due to its partnership with Prime Trust, a fintech company.
The NYDFS claimed that BitGo's partnership with Prime Trust allowed it to operate as a custodian of digital assets without being properly licensed.
BitGo was given 30 days to comply with NYDFS regulations.
The Cease and Desist Order was a major setback for BitGo, which had been expanding its services in the digital asset space.
The order highlighted the importance of regulatory compliance in the rapidly evolving digital asset industry.
As a result of the Cease and Desist Order, BitGo was forced to re-evaluate its partnership with Prime Trust and its overall business strategy.
Frequently Asked Questions
Can I trust BitGo?
BitGo is a trusted leader in digital asset security, serving over 1,500 institutional clients worldwide. With a pivotal role in processing 20% of global Bitcoin transactions, you can rely on BitGo for secure and reliable services.
What does Prime Trust do?
Prime Trust provides secure custody, processing, and compliance services for digital assets and traditional currencies. They offer a range of technology-driven solutions for businesses to manage and process transactions safely and efficiently.
Sources
- https://blog.bitgo.com/level-up-with-bitgo-prime-trading-e4c3217565a9
- https://financefeeds.com/bitgo-withdraws-from-prime-trust-acquisition-deal/
- https://bitcoinist.com/bitgo-pulls-the-plug-on-prime-trust-acquisition/
- https://blog.bitgo.com/bitgo-signs-letter-of-intent-to-acquire-prime-trust-to-expand-digital-asset-and-fintech-b1868391784a
- https://coingeek.com/nevada-orders-prime-trust-to-cease-desist-for-failing-to-safeguard-customer-assets/
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