Crypto custodian BitGo and bitcoin investment firm Swan Bitcoin are forming a Bitcoin-only trust company that will provide bitcoin custody services without any exposure to the rest of the digital assets market.
The deal still remains subject to regulatory approval, said a press release announcing the trust’s formation. The trust company will provide custodial and infrastructure services to a range of clients, from asset managers to insurers and family offices.
“It’s important to us to build a custodian without the risks of securing many altcoins within the same trust company as bitcoin,” said Cory Klippsten, Swan Bitcoin’s CEO, in the release. “We want to do our part to build a dedicated ecosystem for Bitcoin, separate from industry speculators, to allow for innovation in custodial offerings.”
BitGo’s CEO Mike Belshe recognized an opportunity at the start of this year to establish a Bitcoin-only custodian and approached the Swan team, according to the release.
“We immediately saw the vision,” Klippsten said. Swan is an investment firm that focuses only on bitcoin and offers a range of services from automated bitcoin saving plans to white glove services for high net worth individuals and businesses.
“For years, we’ve heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only software and services stack that is focused strictly on the best custody that leverages Bitcoin’s unique features,” Klippsten said.
Klippsten is a Bitcoin maximalist and believes that altcoins have no true value. He is known for being outspoken about the risks surrounding now bankrupt crypto firms such as Celsius and BlockFi prior to their collapses.
#Celsians I encourage you to learn about self-custody and being your own bank.@mashinsky wants to hold your coins and gamble them in risky defi schemes, while bribing you with "rewards" that he printed out of thin air (while allegedly selling $60M of $CEL near the top). https://t.co/YfI2gbcKjv
— Cory Klippsten | Swan.com 🦢 #Bitcoin (@coryklippsten) May 17, 2022
BitGo is an industry stalwart founded in 2013. The company offers digital asset custody solutions and secures approximately 20% of all on-chain Bitcoin transactions by value. BitGo most recently closed a $100 million fundraising round at a $1.75 billion valuation.