Crypto custodian BitGo signals intent to acquire Prime Trust

Crypto custodian BitGo signals intent to acquire Prime Trust

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Wallet infrastructure provider and digital asset custodian BitGo has signed a non-binding letter of intent to acquire fintech infrastructure provider Prime Trust, according to a advertisement on June 8.

Terms of the deal were not disclosed. If the deal goes through, BitGo will acquire Prime Trust’s payment rails and cryptocurrency IRA fund and will increase its wealth management offerings.

Prime Trust’s Nevada Trust Company will also join BitGo’s network of regulated trust companies in South Dakota, New York, Germany and Switzerland. Prime Trust’s API infrastructure and exchange network will be “mapped 1:1” with BitGo’s services. According to BitGo’s statement:

“This acquisition makes BitGo the first global digital asset company to provide a full suite of solutions for fintech institutions and platforms.”

The crypto-custody market is rapidly evolving, with Ripple acquire custody of Swiss digital assets supplier Metaco in May for $250 million. In addition, technological advances are impacting the market.

The acquisition comes as the United States Securities and Exchange Commission has proposed rule changes that would make it more difficult for cryptocurrency firms to act as custodians of their clients’ funds.

Related: Prometheum Subsidiary Receives FINRA Approval for Qualified Custody of Digital Assets

Reportedly, Prime Trust laid off a third of its staff in January. Later, stepped in to hold Binance.US customer funds through a network of partner banks following the March banking crisis. It was the center of a scandal in the US state of Oregon last year when was identified as the source of a $500,000 contribution to the state Democratic Party that later turned out to have come from FTX executive Nishad Singh.

Bitgo was almost acquired by Galaxy Digital for $1.2 billion last year, and filed a lawsuit against Galaxy after the deal was off.

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