BitGo Eyes Acquisition of Fintech Infrastructure Provider Prime Trust
- Crypto custodian BitGo has announced its intentions to acquire fintech infrastructure provider Prime Trust.
- The custodian stated that it has signed a term sheet with Prime Core Technologies, Inc., the parent firm of Prime Trust.
- “The combination of Prime Trust and BitGo would be a significant enhancement for the industry,” said Prime Trust’s interim CEO.
- Prime Trust’s API infrastructure and exchange network will “map over 1:1” with the services provided by BitGo.
A popular crypto custodian and digital asset trust company headquartered in California, BitGo, announced on June 8 that it is considering the acquisition of fintech and digital asset infrastructure provider Prime Trust and has signed a non-binding letter of intent with the firm as well.
As per the official statement on June 8, BitGo has signed a term sheet with the parent company of Prime Trust, Prime Core Technologies, Inc., and aims to bring “business continuity, long-term stability, and regulated, secure solutions to valued Prime Trust clients.”
Prime Trust’s Interim CEO and President, Jor Law, noted that “the combination of Prime Trust and BitGo would be a significant enhancement for the industry,” while adding:
“No other company will have the breath of product and services nor depth of experience that this combined company would have. We are excited to offer our world-class infrastructure within a broader ecosystem and revolutionize the future of crypto.”
BitGo also added that the acquisition of 100% of the equity of Prime Trust will make it “the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms.” The crypto custodian will gain additional banking partners and payment rails, crypto IRA, and additional wealth management offerings.
It was also revealed that Prime Trust’s Nevada Trust Company will officially join the custodian’s existing network of trust firms regulated by authorities in South Dakota, New York, Germany, and Switzerland if the deal goes through. The financial details of the deal between BitGo and Prime Trust remain under wraps.
The fintech infrastructure provider’s API infrastructure and exchange network will “map over 1:1” with the services provided by BitGo, including custody, liquidity, settlement, and compliance capabilities.
“With the expected acquisition of Prime Trust, BitGo is well positioned to enhance its best-in-class, trusted solutions and to service the combined customer base,” said Mike Belshe, CEO and Co-Founder of BitGo.
Crypto custody is becoming a popular service among digital asset firms, and as reported earlier by Bitnation, the firm behind the XRP cryptocurrency, Ripple, announced the acquisition of Metaco, a Switzerland-based digital asset custodian, for around $250 million.