Crypto custodian BitGo said on June 8 that it signed a term sheet to acquire 100% equity in Prime Core Technologies, the parent company of Prime Trust.
BitGo said the acquisition would allow BitGo to offer a “full suite of solutions” to institutional clients and fintech companies.
As a result of the transaction, BitGo will add Prime Trust’s Nevada Trust Company to its network of trust companies.
Prime Trust’s exchange network and API will also help power BitGo services, and BitGo will gain access to Prime Trust’s banking partners and payment rails, crypto retirement funds (IRAs), and its various other services.
Prime Trust faced difficulties
Though BitGo promised advantages from the agreement, some commentators have reacted negatively due to Prime Trust’s ailing reputation.
Bankrupt crypto lending firm Celsius sued Prime Trust in 2022, alleging that the company failed to return $17 million. Prime Trust halted operations in Texas in January 2023 and announced that it would cut one-third of its staff that same month.
Rumors circulated on June 7 suggesting that a custodian in the crypto industry, believed by many to be Prime Trust, was on the verge of bankruptcy.