Bitgo’s plan to acquire digital assets custodian Kingdom Trust has taken a new turn today. The company just announced that instead of acquiring Kingdom Trust it would rather build its own custodian to keep the digital assets of its customers. The news was announced by the company in a Medium post today, and it has come shortly after the startup announced its Institutional Grade Custodial Service Suite about 12 days ago.
The Palo Alto based startup announced in its post that it’s looking to set up BitGo Trust, which will be a new, regulated and qualified custodian built especially for digital assets. On the status of Kingdom Trust acquisition company said that it would no longer go ahead with that plan. The acquisition was pending since last four months due to regulatory approval, and now there’s no need of that approval anymore.
BitGo’s decision, however, was not entirely driven by regulatory inaction on its acquisition plan. Instead, the company decided to take this turn after considering the requirements of its customers, according to BitGo’s Marketing Vice President Ms. Clarissa Horowitz. Speaking to CoinDesk on the matter she said:
“We spent a lot of time over the course of this working with customers because ultimately that’s who we’re going to be serving and we realized they would be best served by a custodian who was entirely focused on their assets, so our focus has been to create a fully qualified independent digital custodian.”
BitGo is still not very sure about how long it will take to set up its own digital asset custodian, thanks to regulatory requirements, but Ms. Horowitz said that they’re working with regulators to ensure a timely launch. In the meantime customers have two options to manage their digital assets:
- Either they can use institutional grade custodial services recently launched by the company;
- Or they can manage their assets themselves.
On the subject of how important it is to build a digital asset custodian she said:
“I think it’s critical, I think the way that you hold digital assets [is different from how you’re] holding stock certificates.”
Now let’s see how long it takes for BitGo to launch its own critical ‘BitGo Trust’.