BitGo Acquires Digital Securities Issuer Harbor – Bitgo, Coinbase, and Gemini Compete for Custodial Solutions
Crypto custodial service and blockchain development behemoth BitGo announced its acquisition of digital securities platform Harbor. The acquisition is geared towards the crypto firm’s ambitions of becoming a full-stack digital solutions provider.
Nothing should be considered investment or financial advice. Enjoy the ride.
BitGo Expands Into The Digital Securities Market
According to reports from, crypto custody solutions provider BitGo has reached an acquisition deal with Harbor, a digital securities platform. The crypto custodial firm announced the news via a press release published on Tuesday (February 18, 2020). The acquisition also gives the blockchain developer control over Harbor’s subsidiaries which boasts crypto transfer agent and broker-dealer capabilities.
Commenting on the details of the deal, CEO of BitGo Mike Belshe said the crypto custody firm is now capable of providing a wider range of digital assets solutions to institutional investors. Belshe remarked that:
“Our vision has always been bigger than wallets and custody, and acquiring Harbor furthers BitGo’s vision of building a new digital infrastructure for financial services. We believe participants will ultimately need trusted, full-stack solutions for digital currencies and now BitGo is well positioned to address institutional requirements as the market develops. BitGo has been an important partner since Harbor’s inception. We’ve worked closely together to integrate BitGo Business Wallets and BitGo Custody into Harbor’s services.”
Mike Belshe, CEO of Bitgo
Harbor made headlines back in April 2018 when the firm raised $28 million in a strategic funding round led by venture capital investment firm Founders Fund. Launching its Regulated Token (R-Token) as part of its blockchain-based compliance protocol, the firm planned to introduce tokenized securities backed by real-world assets such as real estate and investment funds to name a few.
The digital securities provider also bagged a transfer agent license from the Securities and Exchange Commission (SEC) in November 2019.
Speaking on his firm’s capabilities to contributes to BitGo’s range of digital asset solutions, CEO of Harbor, Josh Stein said:
“Harbor provides BitGo with a complementary technology stack for the lifecycle of digital securities, as well as important service capabilities through our digital assets broker- dealer and transfer agent subsidiaries.”
-Josh Stein, CEO of Harbor
Crypto Custody Marketplace Remains Competitive
Reportedly, the largest bitcoin processor in the world with over $15 billion in cryptocurrency transactions per month, BitGo, is not only a giant in blockchain tech, but also in digital securities, and crypto custodial solutions as well. Specifically, the Palo Alto-based crypto solutions provider became the first custodial service tailored to digital currency and virtual asset requirements after launching BitGo Trust in the U.S. in 2018.
Bitgo Custody Solution
In addition, the blockchain giant introduced two new custodial entities in Germany and Switzerland as part of its expansion into the European crypto custody market. BitGo noticed an increased interest in crypto custodial services across Europe and seized the opportunity to introduce BitGo Deutschland and BitGo GmbH. Although BitGo is a leader in the global crypto custodial market with more than 300 clients spread across over 50 countries worldwide, the company is not without a plethora of competitors.
Coinbase Custodial Solution
Back in July 2018, digital asset management behemoth Coinbase announced the launch of its crypto custody service for institutional investors. The firm believed the move could facilitate the widespread adoption of cryptocurrencies and virtual assets. As of May 2019, Coinbase reportedly managed a massive $1 billion worth of crypto and serviced about 70 institutions worldwide.
Gemini Custodial Services
Gemini, a crypto exchange giant owned by the Winklevoss Twins launched its own custody service in September 2019.
Dubbed Gemini Custody, the service promised to provide institutional-grade crypto storage powered by industry-leading security technology. In March 2019, global technology heavyweight IBM announced a partnership with investment firm Shuttle Holdings to launch a crypto custody solution tagged Digital Asset Custody Services (DACS). Powered by IBM’s cloud infrastructure, the service reportedly provided extra security through cloud encryption.
