- It was earlier reported in January that one-third of Prime Trust’s workforce was let go.
- BitGo itself was nearly bought by Galaxy Digital last year for $1.2 billion last year.
BitGo, a supplier of wallet infrastructure and digital asset custodian, said on June 8 that it has signed a non-binding letter of intent to acquire Prime Trust, a provider of fintech infrastructure. The details of the deal were kept confidential. If the purchase goes through, BitGo will expand its wealth management services by acquiring Prime Trust’s payment rails and crypto IRA fund.
Moreover, BitGo’s network of regulated trust firms will soon expand to include Prime Trust’s Nevada Trust Company in addition to its existing locations in South Dakota, New York, Germany, and Switzerland. Prime Trust’s API and exchange network will be able to “map over 1:1” with BitGo’s offerings.
BitGo claims in their announcement that:
“This acquisition makes BitGo the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms.”
Coinciding With Anticipated Regulations
Ripple, a cryptocurrency exchange, spent $250 million to acquire Metaco, a Swiss digital asset custody service, in May. The market is also being affected by the development of new technologies.
Moreover, this acquisition coincides with anticipated regulatory changes that are being considered by the United States Securities and Exchange Commission. If implemented, these changes would make it more difficult for cryptocurrency companies to act as custodians of the cash belonging to their customers.
It was reported in January that one-third of Prime Trust’s workforce was let go. After the March financial crisis, it stepped in to hold Binance customers’ cash via a network of partner banks. Last year, it was at the center of a controversy in the U.S. state of Oregon when a $500,000 gift to the state Democratic Party was traced back to FTX CEO Nishad Singh.
Furthermore, BitGo itself was nearly bought by Galaxy Digital last year for $1.2 billion; once the transaction fell through, BitGo launched a lawsuit against Galaxy.