- Key Features of the Platform
- Importance and Risks of Self-Custody
- Other Regulated Custodial Companies in the USA
BitGo, a United States cryptocurrency custodian, has launched a regulated platform designed to custody and manage native tokens for Web3 protocols, according to a statement from BitGo shared with Cointelegraph on Sept. 16.
Key Features of the Platform
The platform enables crypto-native organizations such as foundations and protocols to programmatically manage native tokens for distribution to investors, employees, grant recipients, and other stakeholders. BitGo’s platform promises to handle all aspects of token management, from 'vesting, unlocking, and distribution' to 'staking, liquidity management, and even tax reporting.'
Importance and Risks of Self-Custody
Self-custody minimizes dependence on centralized intermediaries but introduces its own risks, including cybersecurity exploits and internal misconduct. Recently, on Sept. 16, decentralized finance (DeFi) protocol Delta Prime was hacked for at least $6 million worth of virtual assets. Meanwhile, another DeFi protocol, BaseBros Fi on the Base blockchain, disappeared after stealing user funds via an unaudited smart contract.
Other Regulated Custodial Companies in the USA
Through BitGo New York Trust Company, BitGo is among several US firms, including Coinbase Custody Trust, Fidelity Digital Asset Services, and Paxos Trust Company, chartered by the state of New York to custody crypto for US clients. These companies aim to comply with regulations requiring client funds to be held by qualified custodians, such as a registered broker-dealer or bank.
BitGo’s platform offers an integrated solution for managing native tokens of Web3 protocols, promising enhanced security and streamlined processes. The growing interest in regulated digital assets in the US underscores the importance of regulatory compliance for investor protection.
