BitGo announces a preliminary agreement to buy Prime Trust, a regulated expert in cryptocurrency custody
BitGo, a company that specializes in cryptocurrency custody, is apparently close to acquiring Prime Trust, a Nevada-based company that specializes in cryptocurrency custody. The information was revealed by two persons with knowledge of the situation, who said that the transaction is still awaiting regulatory clearance. The agreement’s financial details have not been made public.
Online reports about Prime Trust’s financial problems, including probable bankruptcy rumors, had surfaced. Although BitGo and Prime Trust did not at first respond to the claims, a Prime Trust spokesperson subsequently told the Wall Street Journal that the deal had really taken place. Since then, BitGo has verified the purchase in a blog post, stating that Prime Core Technologies, the parent business of Prime Trust, has signed a term sheet in order to be acquired.
Jor Law, the interim CEO of Prime Trust, expressed excitement about the purchase and called it a substantial improvement for the sector. Law underscored the depth of the merged company’s product and service offerings as well as its vast experience. He expressed optimism about using their top-notch infrastructure as part of a larger ecosystem to transform the use of cryptocurrencies in the future. The purchase will boost the company’s well-known products, according to BitGo CEO Mike Belshe, and enable them to better serve their combined client base.
The popularity of digital asset custody has been fueled by the need for safe storage and custody solutions for cryptocurrencies, especially among institutional clients and high-net-worth individuals. Many businesses in this sector have attracted hefty values. Regulatory organizations like the U.S. Securities and Exchange Commission (SEC), which has suggested regulation on custody-related issues, have also been interested in the custody problem.
Prior to the beginning of the cryptocurrency bear market in mid-2022, Prime Trust, a Las Vegas-based company, raised $107 million in investment. A third of the company’s employees were let go in January, and the company just said it was ceasing operations in Texas, where it had been applying for a money transmitter license.
Prime Trust received financial advice from Cohen & Company Capital Markets throughout this transaction.
