The United States may soon have its first Bitcoin-only custodial service, or so they say Plans Powered by BitGo and Swan Bitcoin, released on September 15. The joint venture must first obtain approval from regulatory authorities before launching it as planned.
The future company will carry out activities similar to a standard cryptocurrency custody service provider, including holding, administering and managing Bitcoin (BTC) on behalf of investors. According to Swan CEO Cory Klippsten, the solution aims to provide a pure Bitcoin service without the risks of other altcoins under the same roof.
“For years, we have heard from major customers, partners, and other Bitcoin companies that they prefer a pure Bitcoin software and services suite that focuses strictly on the best custodial services that leverage the unique properties of Bitcoin,” explains Klippstein.
Klipsten confirmed to Cointelegraph that the companies are in contact with government regulators about their plans, but have not yet applied for formal approval. “We are first evaluating our acquisition options,” the CEO said.
As part of our long-term vision to drive Bitcoin adoption, we’re announcing a big step forward for Swan and the entire Bitcoin ecosystem:
BitGo and Swan have announced plans to create the first bitcoin-only trust company in the United States
– Swan Bitcoin Adoption Team (@SwanBitcoin) September 14, 2023
BitGo provides digital asset custody and supports more than 700 cryptocurrencies, according to its website. In contrast, Swan’s business is entirely focused on Bitcoin and allows users to invest in Bitcoin through one-time and recurring purchases, keeping records in Fortress Trust and Bakkt, while BitGo acts as a cold storage custodian.
The new company targets institutional investors such as asset managers, pension funds and family offices, as well as governments and corporate finance departments. It will provide cold storage, fraud prevention, anti-money laundering, and know-your-customer protocols, among other Bitcoin-related services.
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