Blockchain startup specializing in security, BitGo announced the intention to acquire the company from South Dakota, which deals with the custody of assets.
At this point in the company’s assets worth more than $ 12 billion.
BitGo has managed to negotiate a deal with the Kingdom Trust Company, but it must still be approved by the regulator. The acquisition is due to the fifth round of funding BitGo in the amount of 43 million US dollars.
Kingdom Trust, according to the website, serves over 100,000 clients, focusing on institutional services, and individual retirement accounts (IRA).
In a statement to CoinDesk, BitGo CEO Mike Belshe stated that this is due to the growing interest from institutional customers to the topic of cryptocurrencies. For such investors, the problem of storage, which would be consistent with all regulatory requirements is a serious problem.
Institutional investors can not enter the market until the custodian repository fully meet all standards.
The two companies are longstanding partners. Before BitGo provided cold storage for bitcoins, ethereum, and other digital assets of the holding Trust Kingdom. In addition, both firms had previously collaborated with BitcoinIRA to create products on the basis of cryptocurrency.