Crypto Custody Company BitGo Is Working To Buy Prime Trust
- Cryptocurrency custody company BitGo has reached a preliminary agreement to purchase Prime Trust.
- The deal is in its early stages and has yet to be approved by regulation.
- BitGo has confirmed that it has signed an acquisition agreement with Prime Trust’s parent company.
According to two people familiar with the matter, crypto custody firm BitGo has reached a preliminary agreement to purchase Prime Trust, another crypto custody specialist regulated in the state of Nevada.
Acquisition to expand digital asset and digital asset infrastructure services worldwide. It will make BitGo the first global digital asset company to offer complete solutions for fintech organizations and platforms.
The crypto custody company has reached a preliminary agreement to acquire Prime Trust. The deal is in the initial stages and still subject to regulatory approval. Both companies declined to comment on the acquisition.
Key expected transaction benefits include:
- Prime Trust’s Nevada Trust Company will join BitGo’s existing global network of regulated trust companies in South Dakota, New York, Germany, and Switzerland.
- Prime Trust’s fintech API infrastructure and Prime Trust exchange network to reinforce BitGo Wallet Services (BWS) and BitGo’s Go Network — custody, liquidity, settlement, and compliance capabilities to map over 1:1.
- BitGo to gain Prime Trust’s world-class network of banking partners and payment rails, crypto IRA, and additional wealth management offerings.
The sources did not disclose the financial terms of the deal. BitGo later confirmed in a blog post that it had signed a non-binding agreement to purchase 100% equity in Prime Core Technologies, the parent company of Prime Trust.
“The combination of Prime Trust and BitGo would significantly enhance the industry,(…). No other company will have the breadth of product and services nor depth of experience that this combined company would have. We are excited to offer our world-class infrastructure within an overall ecosystem and revolutionize the future of crypto.” Prime Trust’s Interim CEO and President, Jor Law, said.
Midway through 2022, before the crypto bear market started to take a serious toll, Las Vegas-based Prime Trust secured $107 million in investment. However, recent news has not been encouraging, with the company cutting a third of its personnel at the end of January and stating it will stop doing business in Texas where it was applying for a money transmitter license.
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