What are the two primary crypto custody models described by the SEC?

The SEC described self-custody, where investors control private keys, and third-party custody, where a qualified custodian manages assets.

How does BitGo's hybrid custody model differ from others?

BitGo allows institutions to combine self-custody and third-party custody simultaneously, offering a custom risk profile.

What security measures does BitGo Bank & Trust provide?

BitGo Bank & Trust offers segregated accounts for over 1,400 coins, backed by a $250 million insurance policy from Lloyd's of London.

Home / Business and Economy / BitGo CEO: We're the Only Provider SEC Described

BitGo CEO: We're the Only Provider SEC Described

15 Dec

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Summary

BitGo offers a hybrid custody model combining self and third-party options.
The SEC's recent bulletin outlined two primary crypto custody models.
BitGo Bank & Trust ensures security with a $250 million insurance policy.

BitGo CEO: We're the Only Provider SEC Described

BitGo CEO Mike Belshe has stated that his company is the sole crypto custodian capable of offering all the solutions detailed in a recent US Securities and Exchange Commission investor bulletin. This claim follows BitGo's acquisition of regulatory approval to function as a bank, significantly broadening its institutional services.

Belshe highlighted that BitGo's platform uniquely permits institutions to integrate both self-custody and third-party custody, establishing customized risk profiles. While the SEC bulletin differentiated between self-custody (investor holds private keys) and third-party custody (qualified custodian manages assets), BitGo enables clients to utilize both simultaneously.

The company's hybrid model stores 90% of client assets in insured cold storage via BitGo Trust, adhering to stringent security and compliance standards. The remaining 10% is held in self-custody hot wallets for operational flexibility and immediate transactions. This structure mitigates single points of failure, ensuring asset safety even if self-custody keys are compromised.