BitGo Announces Preliminary Deal To Acquire Prime Trust Custody Firm

BitGo Holdings, Inc., has announced its intention to acquire Prime Core Technologies, Inc., the parent company of Prime Trust. According to a blog posted by BitGo, the acquisition aims to bring business continuity, long-term stability and regulated, secure services to Prime Trust clients.

Prime Trust expressed excitement about the potential partnership. Jor Law, Prime Trust’s Interim CEO and President, said he believes that the combination of Prime Trust and BitGo will be a game-changer for the industry, stating, “No other company will have the breadth of product and services nor depth of experience that this combined company would have. We are excited to offer our world-class infrastructure within a broader ecosystem and revolutionize the future of crypto.”

The blog posting listed the benefits the acquisition could hold for both companies. First, it noted that Prime Trust’s Nevada Trust Company will join BitGo’s global network of regulated trust companies, which already includes entities in South Dakota, New York, Germany and Switzerland. In addition, the expansion would enhance BitGo’s presence and regulatory reach. Furthermore, the blog described how Prime Trust’s fintech API infrastructure and exchange network will reinforce BitGo’s existing services, including custody, liquidity, settlement and compliance capabilities.

Mike Belshe, CEO and Co-Founder of BitGo, views the acquisition as a milestone transaction that will contribute to a more secure and sustainable future for the digital asset landscape. Belshe stated, “With the expected acquisition of Prime Trust, BitGo is well positioned to enhance its best-in-class, trusted solutions and to service the combined customer base.”

The deal is still subject to regulatory approval, and further details regarding the transaction are yet to be disclosed.

Just recently, bitcoin-only exchanges Strike and Swan both announced that they would be moving away from custody through Prime Trust. Strike announced that it will be utilizing its own custody services, while Swan is moving to Fortress Trust and BitGo, Fortress Trust being founded by the former founder of Prime Trust, Scott Purcell. The acquisition announcement did not address or confirm rumors that Prime Trust is facing insolvency, which has been the center of speculation on Bitcoin Twitter.

8 June 2023 20:30