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BitGo to acquire rival crypto custodian Prime Trust

BitGo to acquire rival crypto custodian Prime Trust

The agreement, made public on June 8, does not disclose the specific terms of the deal. However, if the acquisition is finalized, BitGo will gain control of Prime Trust’s payment rails and cryptocurrency Individual Retirement Account (IRA) fund. This move is expected to expand BitGo’s wealth management offerings, providing a broader range of services to its customers.

The transaction not only brings Prime Trust’s regulated business in Nevada into BitGo’s network of trust companies, but it will also leverage its fintech API infrastructure and exchange network to strengthen BitGo’s Wallet Services (BWS) and Go Network. This collaboration will enhance BitGo’s capabilities in custody, liquidity, settlement, and compliance by mapping them over a 1:1 ratio.

Additionally, BitGo will benefit from Prime Trust’s extensive network of banking partners and payment rails, as well as gain access to its crypto Individual Retirement Account (IRA).

“The combination of Prime Trust and BitGo would be a significant enhancement for the industry,” said Prime Trust’s Interim CEO and President, Jor Law. “No other company will have the breath of product and services nor depth of experience that this combined company would have. We are excited to offer our world-class infrastructure within a broader ecosystem and revolutionize the future of crypto.”

Mike Belshe, CEO and Co-Founder of BitGo, said, “This is a landmark transaction, leading a greater shift in the digital asset landscape toward a more secure and sustainable future. With the expected acquisition of Prime Trust, BitGo is well positioned to enhance its best-in-class, trusted solutions and to service the combined customer base.”

Prime Trust counts some of the world’s largest crypto brands such as Swan, Abra, Dapper Labs and Binance US as clients. It also offers services to other crypto exchanges, NFT creators, digital wallets, OTC desks, RIAs, broker-dealers, banks, and neobanks.

The Las Vegas-based firm offers a portfolio of APIs and plug-and-play widgets as it seeks to be the one-stop shop for financial infrastructure of Fintechs including firms in the cryptocurrency sector. Prime Trust is already famous at the blockchain space thanks to its back-office solutions. The SEC-regulated company began its Bitcoin storage service in 2020, and then added support for Ethereum and ERC-20 tokens.

Prime Trust also serves as a custodian and trustee for personal and corporate trusts, as well as for crowdfunding platforms. The firm claims to have crossed $100 million in annual revenue last year, as well as 250 million API calls per month from its B2B customers.

The post BitGo to acquire rival crypto custodian Prime Trust appeared first on FinanceFeeds.

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