Crypto custodian BitGo signals intent to acquire Prime Trust

Wallet infrastructure provider and digital asset custodian BitGo has signed a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust. Announcement On 8 June.

Terms of the agreement were not disclosed. If the deal goes through, BitGo will acquire Prime Trust’s Payment Rail and Crypto IRA Fund, enhancing its wealth management offerings.

Prime Trust’s Nevada trust company will also join BitGo’s network of regulated trust companies in South Dakota, New York, Germany and Switzerland. Prime Trust’s API infrastructure and exchange network will “map more than 1:1” with BitGo services. According to BitGo’s statement:

“This acquisition makes BitGo the first global digital asset company to offer a full suite of solutions for institutional and fintech platforms.”

The crypto custody market is growing rapidly, with Ripple acquiring Swiss digital asset custody provider Metaco for $250 million in May. Furthermore, technological developments are affecting the market.

BitGo signed a term sheet to acquire equity from Prime Core Technologies, Inc., the parent company of Prime Trust, which brings business continuity, long-term stability and regulated, secure solutions to valued Prime Trust customers.

This acquisition makes BitGo the first global… pic.twitter.com/CUcTUeCFKu

— BitGo (@BitGo) June 8, 2023

The acquisition comes as the United States Securities and Exchange Commission proposed rule changes that would make it harder for crypto companies to act as custodians of their customers’ funds.

Related: Promethium Subsidiary Receives FINRA Approval for Qualified Custody of Digital Assets

Prime Trust reportedly laid off a third of its employees in January. Later, it stepped in to hold Binance.US customer funds through a network of partner banks following the banking crisis in March. It was the center of a scandal in the US state of Oregon last year when it was identified as the source of a $500,000 contribution to the state Democratic Party, which later came from FTX executive Nishad Singh.

Bitgo was acquired by Galaxy Digital last year for approximately $1.2 billion, and a lawsuit was filed against Galaxy after the deal fell through.

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