Crypto fintech startup BitGo launches institutional digital asset lending services

We wrote about BitGo last month when the acquired digital securities platform startup harbor to extend its capabilities to a wider class of digital assets for institutional investors. Digital assets are becoming the most exciting investment vehicles in decades. However, private and institutional investors need services and solutions they can trust. BitGo eliminates risk and increases transparency by providing the most secure and compliant custodial and liquidity solutions.

Yesterday, BitGo announced it is now offering institutional digital asset lending services. With BitGo, institutional clients now have a trusted partner that delivers superior access to supply and industry-leading client service. BitGo’s lending service was built by a Wall Street team that understands institutional investing and clients’ needs. The launch follows a several-month private beta during which BitGo worked closely with leading institutions to hone and refine the offering.

Founded in 2013 by Ben Davenport, Michael Belshe, and Will O’Brien, the Palo Alto, California-based BitGo is the world’s largest processor of on-chain Bitcoin transactions, processing 15% of all global Bitcoin transactions, and $15 billion per month across all cryptocurrencies. BitGo provided institutional investors with security, custody, and liquidity solutions. BitGo processes over 20% of all global bitcoin transactions, and supports over 200 coins and tokens.

BitGo’s lending service was built by a Wall Street team that understands institutional investing and clients’ needs. The launch follows a several-month private beta during which BitGo worked closely with leading institutions to hone and refine the offering.

In 2013, BitGo introduced the industry’s first multi-signature hot wallet. Today, BitGo is the world’s largest processor of on-chain Bitcoin transactions, processing 15% of all global Bitcoin transactions, and $15 billion per month across all cryptocurrencies. BitGo supports over 100 coins and tokens, and has over $2 billion in assets in wallet. Our customer base includes the world’s largest cryptocurrency exchanges and spans more than 50 countries. In 2018, the startup also introduced BitGo Custody and launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets.

“BitGo has built a reputation for leading the industry in innovation, security, and client service, and we are now extending that expertise to BitGo Lending,” said Mike Belshe, CEO, BitGo. “With our lending service, we are melding the best of Wall Street’s sophisticated understanding of how to work with institutional investors, and the best of Silicon Valley’s technology and innovation.”

“Our goal was to build a lending business that is similar to lending businesses in the traditional financial markets,” said Nick Carmi, Head of Financial Services, BitGo. “We are not interested in a high-volume, low-margin business; we are building deep relationships with our clients to drive value for them and to create a long term, sustainable business.”