Swan Bitcoin Partners with BitGo to Launch Bitcoin-Only Trust Company
Swan Bitcoin has announced a partnership with BitGo to launch a Bitcoin-only trust company, pending regulatory approval. The move is aimed at addressing the growing demand for Bitcoin-specific solutions and improving custody and security within the Bitcoin ecosystem. Swan Bitcoin previously transitioned from Prime Trust to Fortress Trust and BitGo. However, Ripple’s recent acquisition of Fortress Trust caused concern among Swan users due to Swan CEO Cory Klippsten’s allegations of criminal conduct by Ripple executives. Swan Bitcoin assured its customers that their coins were held in insured cold wallets at BitGo and were not affected by any incidents at Fortress.
The Vision behind the Partnership
According to Klippsten, the partnership with BitGo aligns with the vision of building a custodian solely dedicated to Bitcoin. Swan aims to create an ecosystem separate from altcoins, allowing for innovation in custodial offerings. The collaboration builds on the existing relationship between Swan and BitGo, as BitGo has already stored Swan users’ coins in cold storage since June. BitGo CEO Mike Belshe believes that separating exchange and custody is the best model for the Bitcoin industry, drawing inspiration from the US financial industry’s proven approach.
A Solution for User Concerns
The creation of a Bitcoin-only custodian is expected to address user concerns and reduce exposure to the broader cryptocurrency market. Swan plans to serve various entities such as asset managers, company treasuries, governments, and on-ramps. The Bitcoin-specific trust company will offer advanced wallet management capabilities and enable clients to hold their own keys while also incorporating qualified custody components. This combination aims to deliver the best custody solution for Bitcoin by focusing solely on its unique features.
Hot Take: Building a Dedicated Ecosystem for Bitcoin
Swan Bitcoin’s partnership with BitGo to launch a Bitcoin-only trust company demonstrates their commitment to creating a dedicated ecosystem for Bitcoin. By separating exchange and custody and focusing solely on Bitcoin, Swan aims to provide the best custodial offerings and foster innovation in the industry. The move also addresses user concerns and limits exposure to other cryptocurrencies. With regulatory approval, Swan Bitcoin can establish itself as a trusted custodian for Bitcoin, serving various entities while leveraging the expertise of BitGo in cold storage solutions. This partnership marks an important step towards advancing Bitcoin adoption and strengthening its position in the market.
By
By
By
By
By
By