DLC BitGo and Swan Partner to Create Bitcoin-Only Trust Firm -

BitGo and Swan Partner to Create Bitcoin-Only Trust Firm

BitGo, a prominent crypto custodian, and Swan, a Bitcoin financial services firm, have announced their plans to create the United States’ first Bitcoin-only trust company, pending regulatory approval. This venture aims to offer custody services exclusively for Bitcoin, minimizing exposure to other digital assets.

Swan will bring its expertise in onboarding and fraud prevention to the partnership, while BitGo will provide its robust custody capabilities. The companies believe that the separation of exchange and custody, a model with a proven track record in the traditional financial industry, is the ideal approach for the Bitcoin industry.

Swan CEO Cory Klippsten emphasized the importance of building a custodian focused solely on Bitcoin to mitigate the risks associated with securing various altcoins within the same trust company as Bitcoin.

It’s worth noting that BitGo had previously planned to acquire crypto custodian Prime Trust, but those plans were canceled, and Prime Trust subsequently faced financial challenges, highlighting the importance of careful custodial management in the crypto industry.

This new collaboration between BitGo and Swan aims to provide a secure and specialized custody solution for Bitcoin, addressing the specific needs of the Bitcoin market while minimizing exposure to the broader digital asset market.

While regulatory approval is pending, this partnership represents a significant step in establishing dedicated custodial services for Bitcoin in the United States.

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