Bitstamp, one of the largest crypto platforms in Europe, has added blockchain security firm BitGo as a custody provider to help securely store their digital assets. In working with BitGo, Bitstamp customers will have access to a qualified custodianship that carries $100 million in insurance.
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 custody offering allows its users to cover up to $100 million worth of their digital assets held in their accounts with the blockchain security firm. BitGo obtained its insurance coverage from the prestigious Lloyd’s of London, one of the oldest insurance agencies in the world, with centuries of experience in this industry.
Founded in 2013, BitGo operated originally as a bitcoin wallet provider but then branched out into other cryptocurrencies and now supports multiple altcoins, including Ethereum, Ripple, Litecoin, Bitcoin Cash, Bitcoin Gold, and Royal Mint Gold.
Last year, BitGo raised $15 million in new funding, led by Goldman Sachs and Galaxy Digital Ventures LLC, the venture capital firm founded by the billionaire Mike Novogratz.
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“BitGo has been one of our most trusted partners for many years and this is a natural extension of our relationship,” said David Osojnik, Bitstamp’s CTO.
Bitstamp celebrates its eighth year in operation
The new partnership also gives a further boon to Bitstamp’s operations in the US after the company has recently secured BitLicense from the New York Department of Financial Services (NYDFS), which allows the exchange to offer trading on crypto pairs to the state’s residents.
Bitstamp celebrates its eighth year in operation, making it the longest-running crypto venue in a sector plagued by hacks and exit scams. The exchange is currently ranked 54th in terms of total trade volume, according to the latest data provided by CoinMarketCap.
In 2016, Bitstamp received a publicity boost after it obtained a license to operate as a fully regulated payment institution (PI) in Luxembourg. At the time, Bitstamp touted the license as a factor that enables it to become the first fully licensed cryptocurrency exchange in Europe.
“Bitstamp is one of the most highly-regarded exchanges in the world and they chose BitGo Custody because we understand what they need to run their business,” said Mike Belshe, CEO, BitGo.