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Popular crypto custodian BitGo announced signing a term sheet to acquire 100% equity in Prime Core Technologies, the parent company of Prime Trust. The move comes amidst swirling bankruptcy rumors surrounding Prime Trust and aims to bolster BitGo’s offerings to institutional clients and fintech companies.
Earlier this year, Prime Trust faced significant challenges, including the suspension of its operations in Texas and staff reductions. The company’s reputation took a hit when it was sued by crypto lending firm Celsius, alleging failure to return a sum of $17 million. Against this backdrop, rumors of Prime Trust’s impending bankruptcy began to circulate on June 7.
BitGo will Integrate Prime Trust’s Services
However, BitGo remains optimistic about the acquisition’s potential advantages. By integrating Prime Trust’s Nevada Trust Company into its network of trust companies, BitGo aims to provide a comprehensive suite of solutions for its institutional clients and fintech partners. Furthermore, BitGo plans to leverage Prime Trust’s exchange network and API to bolster its own services and expand its reach in the crypto industry.
Its fintech API infrastructure and exchange network will reinforce BitGo’s Wallet Services (BWS) and Go Network, enabling seamless custody, liquidity, settlement, and compliance capabilities.
BitGo will also gain access to Prime Trust’s esteemed network of banking partners and payment rails, as well as the opportunity to expand its services to include crypto retirement funds (IRAs) and wealth management offerings.
Expected Benefits of the Acquisition
The acquisition of Prime Trust by BitGo marks a significant milestone, as it positions BitGo as the first global digital asset company to offer a full suite of solutions for institutions and fintech platforms. The combination of BitGo’s long-standing credibility and operational excellence, alongside Prime Trust’s infrastructure and expertise, presents an opportunity to revolutionize the future of crypto.
Jor Law, Prime Trust’s interim CEO and president, expressed enthusiasm for the collaboration, emphasizing the unparalleled breadth of products and services the combined company would offer. He said.
“No other company will have the breath 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.”
Upon completion of the acquisition, BitGo expects several key benefits to materialize. Prime Trust’s Nevada Trust Company will join BitGo’s existing network of regulated trust companies, enhancing its global presence.
On the other hand, Mike Belshe, CEO and Co-Founder of BitGo, maintained, “This is a landmark transaction, leading a greater shift in the digital asset landscape toward a more secure and sustainable future. 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.”
Since its establishment in 2013, BitGo has been a pioneer in multi-signature wallets, introducing TSS technology to enhance security further. With a portfolio encompassing over 600 tokens and partnerships with numerous institutional clients worldwide, BitGo has firmly established itself as a leader in digital asset security, custody, and liquidity.