BitGo Enters Crypto Lending Market with New Services

[Mercury]

Photo: Arnab Shome

BitGo, a popular crypto custody platform, announced on Thursday that it has started offering digital asset lending services to institutional clients.

Per the press release, the US-based company rolled out the full lending services after several months of private beta to guarantee a smooth offering.

“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,” Mike Belshe, chief executive of BitGo, said while commenting on the new services.

“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.”

Targeting global markets

As clarified to Finance Magnates, the company will offer its services to all jurisdictions and “don’t anticipate restrictions,” however, it advises its client base to check their local regulations.

Initially, the lending services will be confined to only Bitcoin, however, the company has plans to “rapidly” add other major digital currencies as well as stablecoins and fiat. Per the company, its lending service can support “over 15 different coins.”

Established as a crypto custodian, BitGo is now diversifying its business, entering into other lucrative crypto services areas. Last month, the firm acquired digital securities platform Harbor along with its broker-dealer and transfer agent subsidiaries.

The US-headquartered company also entered Europe with two local subsidiaries in Germany and Switzerland following the rolling out of trading services directly from the vault-stored funds.

“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.”

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