Cryptocurrency processor and digital-asset custodian BitGo has achieved the SOC 2 Type 2 security certification, saying it will provide an edge in attracting institutional investor interest.
The six‐year‐old company, which was a digital‐wallet pioneer and currently processes $15 billion of Bitcoin and other cryptocurrency transactions per month, has sought to differentiate itself through an independent custody offering. Co‐founder and CEO Mike Belshe has called custody “the missing piece of cryptocurrency market infrastructure [that] has kept institutional investors out of the market.” Last year it obtained a South Dakota state charter for BitGo Trust Co., described as “the first qualified custodian purpose-built for storing digital assets.”
__BitGo Inc., which provides custodian services on more than $2 billion in digital assets, said it has obtained a policy of as much as $100 million through Lloyd’s insurance marketplace that covers the offline storage accounts known as cold wallets that are at the center of the Quadriga debacle. __
Crypto custodian BitGo says it has passed an advanced security review by an outside monitor, claiming to be the first crypto startup to receive this level of certification.
Specifically, the company got a SOC 2 Type 2 certification, a standard security audit performed by an outside monitor assuring that a company keeps its security practices in order.
The dichotomy of regulation and security are seen by some as opposing forces, and others as one that can provide unifying stability to the cryptocurrency industry. Irrespective of the views, at a juncture where scams, frauds, and misrepresentations are running rampant in the industry, regulation and security are undoubtedly a priority.
BitGo, the digital currency security company finds itself at the intersection of this duopoly, plying their trade to maintain crypto-security, while under the radar of the United States regulators.