BitGo CEO Mike Belshe has asserted that the company is uniquely positioned to meet the U.S. Securities and Exchange Commission's (SEC) crypto custody guidelines, following the SEC's recent investor bulletin. Belshe highlighted that BitGo is the only provider offering a hybrid custody model that combines self-custody and third-party custody, allowing institutions to create custom risk profiles. This announcement comes shortly after BitGo received regulatory approval to operate as a bank, enhancing its institutional services.
BitGo's framework allows 90% of client assets to be stored in BitGo Trust cold storage, ensuring compliance and security, while 10% can be held in self-custody hot wallets for operational flexibility. This approach mitigates risks associated with single points of failure, such as lost keys or exchange insolvency. BitGo Bank & Trust, NA, supports this model with regular audits and a $250 million insurance policy. Belshe emphasized that BitGo maintains strict 1:1 custody standards without rehypothecating client assets, offering a comprehensive solution that aligns with SEC recommendations for crypto custodians.
BitGo Claims Unique Position in Crypto Custody Amid SEC Guidelines
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