The announcement by the crypto custodian and issuer of hot and cold storage wallets means that a sizable share of on-chain transactions pass through its services, a sign of consolidation, and power, in the crypto space.
BitGo is processing more than 20 percent of bitcoin transactions, the company said at CoinDesk’s Invest: NYC conference today.
It also raises questions about market collapse: If BitGo goes down, would those assets be at risk? But when asked that question directly, BitGo CEO Mike Belshe, on stage at “The Shape of Things to Come: Crypto Custody in a Proof-of-Stake World” panel, said there was nothing to fear.
“The big thing we do is try to remove single points of failure”, Belshe said. BitGo’s multi-signature key system secures assets, even if one layer gets breached – the clients hold the keys, he said.
Belshe credited BitGo’s growth to customers’ value of their multi-sig security.
In a statement, he said:
“It is a great assurance to our clients that they are always in control of their own assets no matter the circumstances. BitGo is their trusted partner that is focused on making the market for digital assets bigger, stronger and more secure every day.”
BitGo has invested recently in off-chain settlement systems, launching one aimed at institutional clients in May.
Bitcoin News Summary – May 6, 2019
The forthcoming Bakkt exchange, notable for its high level of investment by the company behind New York Stock Exchange, announced that it acquired a company specializing in cold storage, Digital Asset Custody Company. Bakkt also revealed a partnership with Bank of New York Mellon to implement these cold storage solutions in its secure facilities.
A MasterCard crypto debit card is seeking regulatory approval for use within Europe. The prepaid card will allow customers to convert and spend crypto assets wherever Mastercard is accepted. The application is currently under review at the Gibraltar Financial Authority.
A recent survey conducted by Harris Poll for Blockchain Capital reveals that 89% of American adults are aware of Bitcoin, 43% regard Bitcoin as a positive financial innovation, 33% believe most people will be using Bitcoin within 10 years, and 27% are likely to buy Bitcoin within 5 years. All of these positive stats have increased since the survey was last taken in 2017, with younger demographics the most favorable to Bitcoin.
An HSBC bank account connected to Bitfinex was seized by the US Department of Justice. It is alleged that the account was used to funnel American money to the exchange, which is prohibiting from having US banking customers. Furthermore, Zhao Dong, a major Bitfinex shareholder, stated on Twitter that the exchange is looking to release its own security token in an effort to raise $1 billion.