One of the world’s largest providers of crypto financial services, BitGo, is expanding into Germany and Switzerland. The company is thus reacting to a growing demand for custody solutions in the European market.
BitGo is putting out feelers across the Atlantic and will in future offer custody of digital assets in Germany and Switzerland. As one of the largest providers of financial services for digital assets, BitGo is expanding its global reach with the new custodians and is strategically positioning itself in the middle of a growing European crypto market.
BitGo draws to Europe
BitGo has announced two new branches in a press release. The Swiss branch, BitGo GmbH, is a member of the German Association for Financial Services Standards (VQF) and is subject to the supervision of the Swiss Financial Market Supervisory Authority (FINMA).
The German branch, BitGo Deutschland GmbH, already offers custodian services in this country and will apply for the corresponding approval from BaFin (German Federal Financial Supervisory Authority) as soon as the application window opens in November 2020.
Mike Belshe, CEO of BitGo, explains the expansion into the European market with an increasing demand for regulated crypto services:
“We saw a strong demand in Europe last year and it was clear that clients there must be able to work with European-based companies that are regulated in certain jurisdictions.”
Belshe justifies this choice by pointing out that Germany and Switzerland are developing into epicentres for crypto-financial services:
“Switzerland and Germany have both become important European centres for digital assets and for future-oriented regulatory frameworks. Regulatory compliance is a prerequisite for our clients and we are impressed by the understanding and support of the Swiss and German regulatory authorities.”
BitGo’s portfolio covers a range of security, custody and liquidity services for digital assets and addresses professional and institutional investors. For the secure custody of assets, a multi-signature process is used where multiple signatures are used to confirm transactions.
According to BitGo, the company’s customer base includes some of the largest crypto exchanges in over 50 countries. BitGo thus already processes over 20 percent of all Bitcoin transactions worldwide. The company is supported by a number of venture capital and investment companies, including Craft Ventures, Digital Currency Group and Goldman Sachs.