BitGo Signs Agreement to Buy Its Allegedly Bankrupt Rival

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BitGo Holdings Inc., a digital- asset firm, has tentatively agreed to purchase Prime Trust, a rival cryptocurrency custodian governed under Nevada law.

BitGo has signed a term sheet to acquire the shares of Prime Core Technologies, Inc., the parent company of Prime Trust. This move is aimed at providing dependable business continuity, long-term stability, and regulated, secure solutions to the valued clients of Prime Trust’s platforms. It’s worth noting that BitGo already handles approximately 20% of all Bitcoin transactions globally in terms of value.

This move comes at a time when there were speculations that Prime Trust was on the verge of facing bankruptcy. As a result of this acquisition, BitGo is now the first international provider of digital assets to offer comprehensive services to businesses and fintech platforms.

BitGo on Acquiring Prime Trust

BitGo Inc. was founded in 2013 and is an industry leader in institutional-grade cryptocurrency investment services, offering institutional investors security, compliance, and custodial solutions for blockchain-based currencies. The platform a Bitcoin security platform, invented the multi-signature technique.

BitGo signed a term sheet to acquire the equity of Prime Core Technologies, Inc., the parent company of Prime Trust, bringing business continuity, long-term stability and regulated, secure solutions to valued Prime Trust clients.

This acquisition makes BitGo the first global… pic.twitter.com/CUcTUeCFKu

— BitGo (@BitGo) June 8, 2023

With the increasing importance of storing cryptocurrency securely, it’s more crucial than ever to have reliable solutions for storing digital assets. This is especially true for corporate clients and high-net-worth individuals, as their organizations often have significant values at stake. The U.S. Securities and Exchange Commission (SEC) expressed concerns regarding the custody of cryptocurrency assets and proposed the establishment of custody regulations. BitGo introduced BitGo Prime in 2020, enabling its users to trade, borrow, and lend.

Additionally, BitGo acts as the only custodian for WBTC, or wrapped Bitcoin, and offers access to DeFi, staking, NFT wallets, and more. Currently, BitGo is the market leader in digital asset security, custody, and liquidity, serving as the operational backbone for over 1500 institutional clients in more than 50 nations, many of which are regulated organizations, as well as the biggest cryptocurrency exchanges and platforms. Additionally, BitGo handles about 20% of all Bitcoin transactions worldwide in terms of value.

BitGo entered into a preliminary deal with Prime Trust, but it’s still waiting for the necessary regulation. In a statement, Prime Trust Interim CEO Jor Law called the move “a significant enhancement for the industry.”

“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,” Law said.

More On Prime Trust

Prime Trust, a trust firm specializing in providing digital asset infrastructure solutions, has earned recognition for its excellent contributions to the industry. In fact, the company was named the winner of the CB Insights Blockchain 50 and the Fintech 250 in 2022, highlighting its exceptional contributions to the field. By simplifying the process of creating digital assets, Prime Trust enables its customers to design, launch, and scale projects more efficiently and in compliance with regulations.

Back in mid-2022, Las Vegas-based Prime Trust managed to raise an impressive $107 million in investments before the cryptocurrency bear market began to significantly impact the industry. However, recent news surrounding the company hasn’t been as positive, as Prime Trust has had to cut a third of its personnel at the end of January and announced that it would no longer pursue business in Texas, where it was applying for a money transmitter license.