- BitGo now offers custody for BCAP, Blockchain Capital’s security token
- BitGo has long held ambitions outside of its main business of storing cryptocurrencies for large investors
BitGo, the California-based cryptocurrency custody provider, just took a big step into the market for STOs with the announcement that it would add support for BCAP, Blockchain Capital’s security token.
The Palo Alto, Calif. firm, which is best known for storing bitcoin for investors and hedge funds, said on Tuesday that clients can compliantly store the token on their platform and multi-signature wallet for ERC-20 tokens.
“Security tokens are an increasingly important asset class for institutional investors and BitGo is here to support them,” Ben Chan, the firm’s CTO said in a press release. “As a qualified custodian, we recognize how critical compliance is for our clients and we’re pleased to be able to provide custody services that are compliant with securities regulations. This is a major step forward for mainstream adoption.”
To be sure, the firm hasn’t been shy about its ambitions outside of storing assets for bitcoin and other cryptocurrencies, a business that is commoditizing and witnessing shrinking margins as fees compress.
“In the long term we have a vision in which digital assets drive the global economy,” Chan told The Block in an interview. The firm, for instance, played a key role in the roll out of Wrapped Bitcoin, an ERC-20 token that represents a bitcoin.
At the time, Chan said companies were reaching out to BitGo about “wrapping” other currencies and assets. “From a platform perspective, the platform we built can support stocks, bonds, and so on.”
As for Blockchain Capital’s STO, it launched in 2017 as one of the first tokenized investment funds. The token represents a limited partnership stake in the fund.
“We wanted to ensure that our custody solution for BCAP would be completely secure while easy to manage,” Brad Stephens, a managing director of Blockchain Capital, said of the news.
Unlike ICOs, which took the crypto world by storm in 2017, STOs represent actual ownership in a particular company or investment.