How BitGo works
What is BitGo
A provider of institutional-grade storage options for cryptocurrencies and other digital assets, BitGo is a digital asset custody and security firm. The business was established in 2013 and has its corporate headquarters in Palo Alto, California.
Overall, BitGo is a reputable supplier of security and custody services for digital assets to institutional investors, cryptocurrency exchanges, and other companies operating in the space.
The history of BitGo
Mike Belshe and Ben Davenport, two early adopters and creators of Bitcoin, established BitGo in 2013. The company’s first aim was on creating a Bitcoin multi-signature wallet that would enable users to protect their money using several private keys.
Redpoint Ventures, Valor Equity Partners, and DRW Trading were among the investors who provided the business with $12 million in capital in 2014. With this money, BitGo increased the scope of its offerings to include institutional-grade security and custody services for digital assets.
In 2015, the company partnered with the Royal Mint of the United Kingdom to develop a digital gold product, which would allow investors to buy and sell gold digitally using blockchain technology.
In 2018, BitGo acquired Kingdom Trust, a regulated custodian of alternative assets, to expand its custody services to include traditional assets such as stocks, bonds, and real estate.
In 2019, the company launched a regulated custodial platform for digital assets in Switzerland, allowing it to offer its services to European customers.
With over $40 billion in assets under control, BitGo is one of the top suppliers of digital asset custody and security solutions today. To better serve institutional investors, cryptocurrency exchanges, and other companies in the ecosystem, the company has increased the scope of its services to include institutional trading, API integration, and insurance services.
How BitGo works
BitGo offers a range of digital asset custody and security solutions that are designed to be secure, reliable, and easy to use. Here’s how some of BitGo’s key services work:
- Custody of digital assets: BitGo’s solutions for digital asset custody are made to offer institutional-grade security for cryptocurrencies and other types of digital assets. To safeguard funds from theft or hacking, BitGo combines cold storage (offline storage) and multi-signature wallets. In order to further safeguard the assets of its clients, BitGo also provides insurance for its custody solutions.
- Multi-signature wallets: Unlike conventional single-signature wallets, BitGo’s multi-signature wallets demand the use of several private keys in order to authorize transactions. Moreover, BitGo’s wallets have features like whitelisting and transaction restrictions that can assist stop illegal transactions.
- BitGo provides developers with an API that enables them to incorporate BitGo’s security solutions into their own apps. The BitGo API allows programmers to build their own wallets, automate transactions, and keep track of account activity in real-time.
- Institutional trading: Users can purchase and sell digital assets like Bitcoin and Ethereum using BitGo’s institutional trading platform. For customers to execute trades more effectively, the platform provides features like real-time market data, order book depth, and trading algorithms.
- Insurance: To further safeguard the assets of its clients, BitGo’s custody solutions are covered by Lloyd’s of London insurance. The insurance offered by BitGo is intended to offer complete coverage for the value of the assets kept and covers both external theft and internal collusion.
Overall, BitGo’s solutions are designed to provide institutional-grade security and reliability for digital assets, making it a trusted partner for businesses and investors in the cryptocurrency ecosystem.
Does BitGo charge a fee
Yes, BitGo charges a fee for its services. The fees charged by BitGo vary depending on the service being used and the volume of assets being managed. Here are some examples of the fees charged by BitGo:
- Digital asset custody: BitGo charges a custody fee for its digital asset custody solutions. The custody fee is typically a percentage of the assets being held and can vary depending on the size of the account.
- Multi-signature wallets: BitGo charges a transaction fee for its multi-signature wallets. The transaction fee is typically a small percentage of the transaction amount and is used to cover the cost of processing the transaction on the blockchain.
- Institutional trading: BitGo charges a trading fee for its institutional trading platform. The trading fee is typically a percentage of the trade volume and can vary depending on the size of the trade.
- API integration: BitGo charges a fee for its API integration services. The fee is typically based on the volume of API requests and can vary depending on the complexity of the integration.
- Insurance: BitGo’s insurance coverage is included in the custody fee and does not require an additional fee.
Overall, the fees charged by BitGo are competitive with other digital asset custodians and are designed to provide value for customers while covering the costs of providing secure, reliable custody and security solutions.