BitGo, a cryptocurrency custodian, has unveiled a new regulated platform designed for managing and custodying native tokens for Web3 protocols. This platform allows crypto-native organizations, such as foundations and protocols, to manage their native tokens programmatically and distribute them.
Overview of BitGo’s New Platform
BitGo’s platform facilitates the distribution of tokens to investors, employees, grant recipients, and other stakeholders. Protocols like Worldcoin, LayerZero, Sui, and ZetaChain are already benefiting from the service. Unlike the traditional approach of self-managed on-chain wallets or smart contracts, the new platform aims to simplify custody and distribution.
Advantages of BitGo's Platform
BitGo suggests that combining non-custodial wallet options, smart contracts for distribution, and separate custody providers can result in 'unnecessary challenges and complications,' which could cause security issues and gaps in compliance and transparency. The platform supports token vesting, unlocking, distribution, staking, liquidity management, and tax reporting functions, providing a streamlined approach.
Insurance and Security Features
To boost security and trust, BitGo offers up to $250 million in insurance coverage for assets under its custody, protecting against loss, theft, and misuse when it holds all the keys. This is especially significant given the increased scrutiny by the U.S. Securities and Exchange Commission (SEC), requiring crypto investment managers and funds to store client funds with certified custodians. BitGo is among those certified in New York State and has recently been chosen to custody tokens for 21Shares' U.S. Spot ETFs.
BitGo’s new platform marks an important advancement in managed and secure token storage for Web3 protocols, offering a comprehensive solution for asset distribution and management.
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