{"id":19133,"date":"2023-06-08T22:46:01","date_gmt":"2023-06-08T22:46:01","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-custodian-bitgo-signals-intent-to-acquire-prime-trust\/"},"modified":"2023-06-08T22:46:03","modified_gmt":"2023-06-08T22:46:03","slug":"crypto-custodian-bitgo-signals-intent-to-acquire-prime-trust","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/crypto-custodian-bitgo-signals-intent-to-acquire-prime-trust\/","title":{"rendered":"Crypto custodian BitGo signals intent to acquire Prime Trust"},"content":{"rendered":"

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Wallet infrastructure provider and digital asset custodian BitGo have signed a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust, according to an\u00a0announcement\u00a0on June 8.\u00a0<\/p>\n

The terms of the agreement were not disclosed. If the deal goes through, BitGo will acquire Prime Trust\u2019s payment rails and cryptocurrency IRA fund and increase its wealth management offerings. <\/p>\n

Prime Trust\u2019s Nevada Trust Company will also join BitGo\u2019s network of regulated trust companies in South Dakota, New York, Germany, and Switzerland. Prime Trust\u2019s API infrastructure and exchange network will \u201cmap over 1:1\u201d with BitGo services. According to the BitGo statement:<\/p>\n

\u201cThis acquisition makes BitGo the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms.\u201d<\/p><\/blockquote>\n

The crypto custody market is evolving rapidly, with Ripple acquiring Swiss digital asset custody provider Metaco in May for $250 million. In addition, technological advances are impacting the market.<\/p>\n

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BitGo signed a term sheet to acquire the equity of Prime Core Technologies, Inc., the parent company of Prime Trust, bringing business continuity, long-term stability and regulated, secure solutions to valued Prime Trust clients.<\/p>\n

This acquisition makes BitGo the first global\u2026 pic.twitter.com\/CUcTUeCFKu<\/a><\/p>\n

\u2014 BitGo (@BitGo) June 8, 2023<\/a><\/p><\/blockquote>\n

The acquisition comes as the United States Securities and Exchange Commission has proposed rule changes\u00a0that would make it harder for crypto companies to act as custodians of their customers\u2019 funds. <\/p>\n

Related: Prometheum subsidiary receives FINRA approval for digital asset qualified custody<\/em><\/strong><\/p>\n

Prime Trust reportedly laid off a third of its staff in January. Later, it stepped in to hold Binance.US customer funds through a network of partner banks after the banking crisis in March. It was the center of a scandal in the U.S. state of Oregon last year when it was identified as the source of a $500,000 contribution to the state Democratic Party that later turned out to have come from FTX executive Nishad Singh.<\/p>\n

Bitgo itself was almost acquired by Galaxy Digital for $1.2 billion last year, and filed suit against Galaxy after the deal was cancelled. <\/p>\n

Magazine: \u2018Account abstraction\u2019 supercharges Ethereum wallets: Dummies guide <\/em><\/strong><\/p>\n<\/div>\n