BitGo Custody Now Supports BCAP Security Tokens

In addition to multi-signature wallet security, BitGo clients can custody their BCAP assets with BitGo Trust Company.

Crypto wallet and blockchain security firm BitGo has expanded its suite of custody products and services to support Blockchain Capital’s BCAP security tokens. The token represents a fractional non-voting economic interest in Blockchain Capital’s tokenized venture capital fund focused on digital assets.

The company says the addition of the world’s first ever security token, which was launched in a $10 million ICO back in April 2017, to the service will be very promising and a first-mover advantage.

Discover Barcelona Trading Conference – A Top Tier Crypto Trading Event

Blockchain Capital, founded in 2013, is a venture fund that gives an opportunity for BCAP token holders to gain exposure to companies operating within the blockchain industry. The tokenized investment fund has financed over 70 companies and projects since its inception.

“In addition to multi-signature wallet security, BitGo clients can custody their BCAP assets with BitGo Trust Company, a qualified custodian that provides compliant custody for security tokens,” the Palo Alto-based startup said in a statement.

Suggested articles

World's Biggest Vessel Opens Gates for 2019 Coinsbank Blockchain CruiseGo to article >>

BitGo’s patent multi-signature wallet technology has attracted institutional players because it offers an enterprise-grade custody service for their assets as well as application programming interface access to its underlying security platform. BitGo’s multisig e-wallets require a transaction to have two or more signatures before it can be executed, a security layer that reduces the risk of fraud.

Secure Access to Crypto Markets

“We wanted to ensure that our custody solution for BCAP would be completely secure while easy to manage. When we compared custody offerings, BitGo’s solution was far ahead of the other options in both design and security, so we’re excited to partner with them,” said Brad Stephens, Co-Founder and Managing Partner of Blockchain Capital.

The step reflects the surge in demand for custody solutions for altcoins and other tokens and not just leading cryptocurrencies, such as Ethereum and Bitcoin. Although this will have a profound impact on the crypto market, especially in the long-term, dealing with smaller cryptocurrencies is related to higher risks.

All the tokens recently added by BitGo, as well as those of the first batch, which covered only seven assets, were requested by the company’s institutional clients, it says. In April 2018, BitGo launched support for ERC20 tokens, and in July it added 57 coins and tokens.

“Security tokens are an increasingly important asset class for institutional investors and BitGo is here to support them. As a qualified custodian, we recognize how critical compliance is for our clients and we’re pleased to be able to provide custody services that are compliant with securities regulations. This is a major step forward for mainstream adoption,” adds BitGo CTO Ben Chan.

Got a news tip? Let Us Know