Institutional Custodians getting bought by blockchain companies! seriously??

in massadoption •  7 years ago  (edited)

As we often talk about mass adoption and the hurdles along the way. Having an institutional custodian for digital assets is one major hurdle when we are thinking about large asset managers getting into the industry.

Here we are with BitGo potentially buying Kingdom Trust.

BitGo: BitGo is a blockchain software company that secures digital currency for institutional investors. Its technology solves the most difficult security, compliance and custodial problems associated with blockchain-based currencies, enabling the integration of digital currency into the global financial system.

Kindom Trust: Kingdom Trust is a non-fiduciary trust company, registered and regulated in the state of South Dakota as a non-depository trust company. Kingdom Trust is a passive, non-discretionary custodian that does not provide, promote, endorse or sell investment products and does not endorse or promote any individual investment advisor or investment sponsor.

https://www.businesswire.com/news/home/20180125006079/en/BitGo-Enters-Agreement-Acquire-Kingdom-Trust

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BitGo first to market.... great strategic investment.

Thanks for sharing. It will be interesting to see all the new service provider opportunities the crypto-market creates and opens up! Buckle in! ;)

@liotap. this is quite interesting in that it further legitimizes crypto as an investment class. Thanks for sharing.

very good information @liotap, although I do not understand with your explanation about Custodian Institution bought by blockchain company. But I am very sure, you are sharing information that is very useful for many people. Thanks for sharing and hope you will always be successful... :)

My point is that there is a bit of irony here. You have an emerging technology company gobbling an old school business. Logic would be that the old one (they have money or access to financing) buys the new one (who needs a lot of money to grow) to stay ahead of the curve or at least keep up with the market.

now I realize that at the end of the day, a small company can buy a big company if it has a way to pay for it.

Here, this is even crazier because of the relative sizes of the businesses and what it shows is growth expectations. Trust company is like a commodity, digital asset wallet services the new growing segment. It just tells you the overall interest from institutions in the space. Basically you need a lot of money for this transaction and it's not coming in the form of crypto. to me it signals huge demand, therefore mass adoption...

Will be interesting to see what happens with all the new opportunities, and I'm sure there are many more surprises and "exotic" translations of this kind to emerge! Some will work some won't - time will tell! Thanks again for the additional info.

Thank you very much for you, because it has explained it all for me, now I already understand what you mean.

Really thanks for sharing