In a blog update on Wednesday, «Murch,» a software engineer at the firm, said the Genesis hard fork scheduled for Feb. 4, 2020, would usher in a new consensus mechanism making BitGo’s BSV wallets unable to receive payments.
A major code update for the cryptocurrency bitcoin SV (for Satoshi’s vision) will render some features of BitGo’s wallets useless, the crypto custodian says.
This means that, following the hard fork, funds in these wallets will still be spendable and BSV can be sent from the wallets. However, sending BSV to a wallet will produce an invalid transaction – even if it’s a BitGo wallet sending «change» back to itself, said Murch.
Specifically, the post stated:
«This consensus rule change will make Pay-to-Script-Hash (P2SH) outputs invalid. Since BitGo’s BSV wallets use P2SH-based multi-signature addresses, the protocol change will render BitGo BSV wallets unable to receive funds.»
Customers holding the cryptocurrency – itself a fork of the bitcoin blockchain – are advised to either exchange their BSV into bitcoin, or withdraw their coins to an external wallet before the fork.
«If you continue holding BSV in your BitGo wallet after February 4th, you will only be able to sweep the wallet and most functionality will be disabled,» Murch wrote.
BitGo stores billions of dollars in cryptocurrency for clients such as institutional investors and exchanges. The firm recently claimed it’s processing over 20 percent of all bitcoin transactions.
In 2018, BitGo was approved in the U.S. to act as a qualified custodian for digital assets.
BitGo to Provide Institutional-Grade Custody and Wallets for Tron
Digital asset financial services firm BitGo has announced that it will provide institutional-grade custody and wallets for Tron (TRX) starting on Nov. 8.
According to the official announcement published on Oct. 14, BitGo has been working closely with Tron “to develop the first TRX institutional-grade wallet and custody offerings that provide on-chain, multi-sig security.” The post reads:
“TRON came to us because of our reputation for delivering secure and compliant solutions designed for institutional investors. … Multi-sig has been openly reviewed and tested by the security community. It works with a multitude of open source tools and we are very pleased to be extending it to TRX on November 8.”
It is also noted that BitGo’s multisignature addresses require two or more separate users to use their keys in order to get access to the funds.
$100M insurance policy and staking services
As Cointelegraph reported on Oct. 10, Luxembourg-based cryptocurrency exchange BitStamp has announced that BitGo will offer custodianship of its digital assets. With BitGo Custody, Bitstamp’s assets will be secured completely in cold storage in bank-grade vaults and protected by the custodian’s $100 million insurance policy.
Previously, BitGo has also launched a new staking service for clients who store their assets with its qualified custodian subsidiary BitGo Trust, with Dash (DASH) and Algorand (ALGO) supported initially.
