Blockchain security firm and cryptocurrency wallet BitGo is expanding its suite of stablecoins custody offerings. The latest stablecoin coming to BitGo is the Gemini Dollar (GUSD). Besides this, BitGo already offers custody services for many other stablecoins like Circle’s USD Coin (USDC), MakerDAO’s DAI, TrustToken’s TrueUSD (TUSD), and Paxos Standard (PAX).
This is the 101st crypto asset added by BitGo to its custody offerings. BitGo believes that the addition of a wide-range of stablecoins will give the company the first-mover advantage. Moreover, it will also help towards attracting institutional players to the crypto space. In the last few months, a number of crypto companies have launched their own stablecoins citing a huge potential. Furthermore, the controversies and suspicious operation of Tether (USDT) token has given more room for new players to chip in.
Stablecoins are basically digital assets tied to fiat currencies like the U.S. Dollar or Euro or any other fiat. Unlike other crypto assets which have high volatility, stablecoins are relatively stable. At any given time, the price of stablecoin is equal to the price of the fiat currency.
High Demand for Stablecoins
In September itself, BitGo received the regulatory license to offer crypto custody services. This allowed the company to pitch regulated storage solution to institutional investors.
Isaac Elefheriadis, BitGo’s product technical manager told CoinDesk that there’s a huge demand for stablecoins from exchanges. According to BitGo’s internal record for API requests, a total of 28,894 API requests arrived from October 9 to November 9. The company’s clients submitted 137,649 searches for USDC and 151,768 searches for TUSD. These searches basically co-relate to transactions and wallet balances.
“When investors are looking for a place to custody their funds, they are looking for a one-stop-shop, a place to store all their crypto assets,” Eleftheriadis said. “Certainly, we are going to continue adding more coins and tokens.”
Several Crypto Companies Adding Stablecoins
A number of crypto firms in the market are adding stablecoins to their product offerings. It means that BitGo certainly has a huge competition in the market.
BitGo competitor and producer of hardware crypto wallet – Ledger – recently added support for a number of stablecoins. Earlier this week, decentralized crypto network EOS announced the support for CarbonUSD.
Last month, Hong Kong-based cryptocurrency exchange OKEx added support for four stablecoins. This includes TrustToken’s TrueUSD (TUSD), Circle’s USDCoin (USDC), the Gemini Dollar (GUSD), and the Paxos Standard Token (PAX).
“The advantage of a blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars. That’s why we think of it as an important step towards a more open financial system.”
BitGo’s Custody Service Offerings
Crypto custodian BitGo is popular for its multi-signature wallet that offers which provide an additional layer of security to reduce frauds. Furthermore, to execute a transaction, BitGo’s multisig e-wallets two and more signatures. Due to its enterprise-grade custody services, BitGo’s multisig wallet feature is quite popular among institutional players.
Last month during its Series B funding, BitGo received a huge $15 million investment from Goldman Sachs and Galaxy Digital. Galaxy Digital is a cryptocurrency merchant bank led by hedge fund titan and Bitcoin billionaire Mike Novogratz.
In just last one year, BitGo has clocked phenomenal growth and expansion. The company added more than 90 crypto assets to its custody offerings. Moreover, BitGo serves more than 300 institutional clients currently. BitGo’s vice president of marketing, Clarrisa Horowitz recently told that the company is restructuring its business model. These efforts are to improve profitability and serving its customers better.
Also, the company is implementing some transitional change in technology to become a full-fledged financial services company.