BitGo is rapidly become one of the most important, and well-known, names in the digital assets sector. Over the past week, the company has taken multiple steps forward solidifying this, through talks of acquisition, insurance policies, and an expansion of services.
BitGo Putting Safety First
One of the hottest trends surrounding digital assets, are a bevy of lending services/interest bearing accounts. These services, which allow for people to deposit their holdings in return for lucrative interest rates commonly turn to BitGo as a custodian. This is due to both a good track record, in addition to boasting an extensive insurance policy. This policy, which previously covered up to $100M in assets, has now been upped to cover assets up to $700M in value. The following are a few of the aforementioned lending services which utilize the company as a trusted custodian
Further endorsement of BitGo as a trusted custodian of digital assets has also come from the U.S. Marshalls Service (USMS). The company was recently awarded a contract which will see it custody digital assets seized by U.S. authorities, while the assets await ‘disposal’ through government run auctions.
With BitGo continuing to grow in popularity, it has caught the attention of Galaxy Digital. Already an early backer, Galaxy Digital is reportedly in the process of completing an acquisition of the Palo Alto based company.
The deal, which was first reported by CoinDesk, is expected to be a hearty one. With previous acquisition talks between BitGo and PayPal called off – despite an offer of $750M – it would stand to reason that the growth seen surrounding digital assets this year will result in a massive sum.
BitGo Acquires Lumina
Despite the rumblings of a potential acquisition by Galaxy Digital, this has not dissuaded BitGo from completing a recent acquisition of its own. This past week, Lumina was acquired and described as a company specializing in the ‘institutional-grade management of digital assets’.
In addition to acquiring Lumina, and its suite of offerings, it has indicated that certain C-level executives will be joining the team.
“We at BitGo have been working with the world-class team at Lumina for some time as partners and clients…The founders of Lumina are taking leadership positions within BitGo, and Chen Fang, CEO of Lumina will be taking the role of Chief Product Officer for all BitGo products.”
A Diverse Offering
The aforementioned acquisition of Lumina brings multiple benefits to BitGo and the services which it has on offer. More specifically, it has now announced the launch of ‘BitGo Portfolio & Tax’.
BitGo Portolio is described as a consolidation platform, providing users with a full view of their portfolios. This is achieved by allowing transactional data from any wallet/exchange to be uploaded – and subsequently displayed in an intuitive manner.
BitGo Tax is described as a service built to generate tax reports based on transactional data. As this service is fully integrated with the aforementioned BitGo Portfolio, this tax service should be able to generate comprehensive and accurate reports.
With the popularity of digital assets sky-high, entities such as the IRS and CRA are beginning to crack down on reporting. The result is a genuine need for services such as BitGo Portfolio/Tax, and others such as TokenTax, Koinly, etc.