0
📰 News
388 views

BitGo CEO Mike Belshe: ‘Exchanges Don’t Hold Assets’

  • Alex Dovbnya
    📰 News

    With the likes of Fidelity and Bakkt, Mike Belshe predicts ‘massive growth’ in 2019, but proper cryptocurrency custody is a must

BitGo CEO Mike Belshe: ‘Exchanges Don’t Hold Assets’
Cover image via u.today
Contents

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.

👉MUST READ

Coinbase Custody Now Holds More Than $500 Mln in Digital Assets

Coinbase Custody Now Holds More Than $500 Mln in Digital Assets

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’.      

Subscribe to U.Today on Facebook, and get involved in all top daily cryptocurrency news, stories and price predictions!

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

👓 Recommended articles

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings