‘Unprecedented’ Institutional Demand for Bitcoin: Bitgo’s Custodied Assets Top $16 Billion, No Paypal Deal

Bitgo’s custody assets have exceeded $ 16 billion. The company sees “unprecedented interest from institutional investors” stemming from the economic impact of the coronavirus pandemic and the recent Bitcoin bull run. It was also rumored that PayPal was in acquisition talks with the company.

$ 16 billion worth of cryptocurrencies in custody

Bitgo announced on Wednesday that it had reached a new milestone of more than $ 16 billion in custody digital assets. The company noted that the achievement further validates institutional investors’ interest in cryptocurrency, and does the following:

As institutional interest in cryptocurrencies continues to grow, top investors are looking for an institutional security and financial infrastructure to hold, trade and lend their digital assets.

Bitgo stated that it currently accounts for more than 20% of all Bitcoin transactions in the chain, processes over $ 15 billion in monthly volume, and supports over 300 coins and tokens. The company is backed by Goldman Sachs, Craft Ventures, the Digital Currency Group, Drw, Galaxy Digital Ventures, Redpoint Ventures and Valor Equity Partners. According to Bitgo, the company has over 400 customers in 50 countries, including Bitstamp, Nexo and Pantera.

Once a simple cryptocurrency wallet provider, Bitgo has expanded its business to provide crypto financial services – including liquidity, custody, and security solutions – for institutional investors. In 2018, the company started its custody service Bitgo Trust Company. This year, Prime Trading and Lending and Portfolio and Tax Services were launched.

Bitgo CEO Mike Belshe said his company’s goal is to “build trust and pave the way for mainstream investments in digital assets.”

We are seeing unprecedented interest from institutional investors due to the economic impact of the pandemic, as well as Bitcoin’s exceptional performance.

In October, the payment giant PayPal is said to have held talks about the takeover of Bitgo. However, according to a source cited by Fortune, that deal has failed and PayPal is now considering other companies in the crypto space.

What do you think about Bitgo custody of $ 16 billion in digital assets? Let us know in the comments below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

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