During a recent interview with Cheddar, Mike Belshe, the CEO of BitGo, explained why cryptocurrency custody is so important for the industry. He claims that cryptocurrency exchanges are not supposed to hold assets, leaving this job to a professional custodian.
Top-of-the-line crypto custody
As reported by U.Today, BitGo has presented ‘the most comprehensive insurance offering’ on the market, covering up to $100 mln in losses. Belshe called that ‘a huge thing for crypto’, which was also reiterated in today’s interview. They employ a number of sophisticated mechanisms (from physical vaults to software) to make sure that not a single person has access to their clients’ assets.
Tapping into institutional clients
Plenty of cryptocurrency exchanges are willing to take the risk of holding their users’ private keys. However, according to Belshe, exchanges ‘do not hold assets’. Given that a growing number of institutional players are getting interested in crypto, there is also an increasing need for a regulated custodian who will ensure the necessary level of protection. BitGo ‘is on the cusp’ of building out that necessary framework.
Belshe also weighed in on the QuadrigaCX disaster, assuming that the whole narrative could be a ‘fable to cover something up’.