BitGo Announces Preliminary Deal To Acquire Prime Trust Custody Firm

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Bit­Go Hold­ings, Inc., has announced its inten­tion to acquire Prime Core Tech­nolo­gies, Inc., the par­ent com­pa­ny of Prime Trust. Accord­ing to a blog post­ed by Bit­Go, the acqui­si­tion aims to bring busi­ness con­ti­nu­ity, long-term sta­bil­i­ty and reg­u­lat­ed, secure ser­vices to Prime Trust clients.

Prime Trust expressed excite­ment about the poten­tial part­ner­ship. Jor Law, Prime Trust’s Inter­im CEO and Pres­i­dent, said he believes that the com­bi­na­tion of Prime Trust and Bit­Go will be a game-chang­er for the indus­try, stat­ing, “No oth­er com­pa­ny will have the breadth 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.”

The blog post­ing list­ed the ben­e­fits the acqui­si­tion could hold for both com­pa­nies. First, it not­ed that Prime Trust’s Neva­da Trust Com­pa­ny will join Bit­Go’s glob­al net­work of reg­u­lat­ed trust com­pa­nies, which already includes enti­ties in South Dako­ta, New York, Ger­many and Switzer­land. In addi­tion, the expan­sion would enhance Bit­Go’s pres­ence and reg­u­la­to­ry reach. Fur­ther­more, the blog described how Prime Trust’s fin­tech API infra­struc­ture and exchange net­work will rein­force Bit­Go’s exist­ing ser­vices, includ­ing cus­tody, liq­uid­i­ty, set­tle­ment and com­pli­ance capabilities.

Mike Belshe, CEO and Co-Founder of Bit­Go, views the acqui­si­tion as a mile­stone trans­ac­tion that will con­tribute to a more secure and sus­tain­able future for the dig­i­tal asset land­scape. Belshe stat­ed, “With the expect­ed acqui­si­tion of Prime Trust, Bit­Go is well posi­tioned to enhance its best-in-class, trust­ed solu­tions and to ser­vice the com­bined cus­tomer base.”

The deal is still sub­ject to reg­u­la­to­ry approval, and fur­ther details regard­ing the trans­ac­tion are yet to be disclosed.

Just recent­ly, bit­coin-only exchanges Strike and Swan both announced that they would be mov­ing away from cus­tody through Prime Trust. Strike announced that it will be uti­liz­ing its own cus­tody ser­vices, while Swan is mov­ing to Fortress Trust and Bit­Go, Fortress Trust being found­ed by the for­mer founder of Prime Trust, Scott Pur­cell. The acqui­si­tion announce­ment did not address or con­firm rumors that Prime Trust is fac­ing insol­ven­cy, which has been the cen­ter of spec­u­la­tion on Bit­coin Twitter.

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