BitGo Hires Former Trust Banker to Supervise Custody for Corporate Clients

Richard J. Corcoran is now on the board of the BitGo company to lead operations of the startup’s new division dubbed BitGo Trust Company. The latter has been recently launched for working with custody for institutional customers.

A useful pro

Corcoran is going to manage billion-dollar crypto assets, being the CEO of the aforementioned BitGo division created for various institutional customers, such as hedge funds, mutual funds, etc.

In an interview, Corcoran admitted that he knows well the regulatory rules and how to follow the necessary standards while working with customers. He also added that the first V.I.P. customers are currently getting on board.

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Before retirement, Corcoran used to work for First National Bank in the state of South Dakota for 25 years, heading the local trust department. It is also South Dakota where BitGo received its trust license earlier in 2018, so now the company can store crypto for institutional investors.

Corcoran retired two years ago and at the same time he met the CEO of BitGo, Mike Belshe. An attorney introduced them to each other, and Mike began to ask Corcoran questions regarding the trust industry in that state.

US laws for institutional investors

In the US, institutional investors are legally obliged to use the services of qualified custodians as opposed to storing assets themselves.

Qualified custodians can be banks and even brokers. However, institutional investors these days, when it comes to crypto, more often prefer to work with companies that have a state license of a trust company, such as BitGo. Coinbase is on this list, too, since this year the exchange has opened a regulated trust company in NY.

As per Corcoran, South Dakota is one of the most popular trust jurisdictions in the US due to favourable local trust laws. Currently, there are more than 100 independent trust companies in this area compared to 25 years ago when there were only 12.