BitGo, a leading crypto custodian, and Swan Bitcoin, a Bitcoin financial services firm, announced on Friday their plans to establish the first Bitcoin-only trust company in the U.S., pending regulatory approval. This initiative aims to provide custody services without exposure to the broader digital asset market.
The joint venture will merge BitGo's expertise in custody capabilities and regulatory compliance with Swan's proficiency in onboarding and fraud prevention. This collaboration follows the traditional model of the U.S. financial industry - the separation of exchange and custody, as stated by BitGo CEO Mike Belshe.
Earlier this year, both companies recognized an opportunity to create a Bitcoin-only custodian, leveraging each firm's unique abilities and supporting innovators pushing Bitcoin adoption. Swan CEO Cory Klippsten shared that major clients and other Bitcoin companies have expressed a preference for a Bitcoin-only software and service stack focused solely on optimal custody leveraging Bitcoin's unique features.
Despite the longest ever Bitcoin bear market, both BitGo and Swan have shown resilience. BitGo recently closed a funding round of $100 million at a valuation of $1.75 billion. Swan has already witnessed significant revenue growth in 2023 and forecasts a further 50% increase by year-end, exceeding $750,000 annualized.
Swan has been proactive in addressing the complex issue of custody, which it deems as the most challenging aspect for Bitcoin holders. In 2022, Swan acquired Specter Solutions and plans to launch Swan Vault, a retail-facing multisig custody solution, in October.
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