According to an announcement made on June 8th, digital asset custodian BitGo has entered into a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust, which specializes in wallet infrastructure.
The details of the agreement have not been made public. In the event that the transaction is successfully completed, BitGo will obtain ownership of Prime Trust’s payment rails and cryptocurrency IRA fund, thereby expanding its portfolio of wealth management services.
In addition to Prime Trust’s Nevada Trust Company becoming a part of BitGo’s network of regulated trust companies in South Dakota, New York, Germany, and Switzerland, the API infrastructure and exchange network of Prime Trust will seamlessly integrate with BitGo’s services.
The digital asset custody market is undergoing rapid transformation, as evidenced by Ripple’s recent acquisition of Swiss-based digital asset custody provider Metaco for a sum of $250 million. Furthermore, advancements in technology are significantly influencing the market.
The acquisition is taking place amidst the United States Securities and Exchange Commission’s proposed alterations to existing regulations, which could potentially impose greater restrictions on crypto companies seeking to operate as custodians of their client’s funds.
In January, Prime Trust reportedly downsized its workforce by approximately one-third. Subsequently, it played a crucial role in safeguarding Binance.US customer funds via a network of affiliated banks during the banking crisis that occurred in March. In the past, Prime Trust was embroiled in controversy in the state of Oregon when it was revealed that a $500,000 contribution to the state Democratic Party, which was initially attributed to Prime Trust, was actually made by FTX executive Nishad Singh.
In the previous year, BitGo was almost acquired by Galaxy Digital for a sum of $1.2 billion. However, after the deal was terminated, BitGo filed a lawsuit against Galaxy Digital.
#BitGo #FinTech #FTX #WealthManagement
