California-based digital asset financial services firm BitGo is expanding its cryptocurrency storage service to Europe with two new entities, the company announced on 10 February.
According to the press release, the firm decided to launch its new custodial subsidiaries in Switzerland and Germany after it saw a lot of demand in the region last year. BitGo chose the two countries in order to provide its clients with the ability to choose the jurisdiction that is best suited to their business, as the entities will be regulated by two different financial authorities. The CEO of BitGo, Mike Belshe, said in a statement:
“Switzerland and Germany have both become important European centers for digital assets as well as for forward-thinking regulatory frameworks. Regulatory compliance is a prerequisite for our clients, and we have been impressed with the understanding and support of Swiss and German regulators.”
BitGo GmbH, the new Swiss entity, is already a member of the Financial Services Standards Association, which is overseen by the Swiss Financial Market Supervisory Authority (FINMA). Although BitGo Deutschland GmbH, the German subsidiary, is already operational, it does not have a license yet. The firm plans to apply for regulatory approval when the application window opens in November 2020.
Established in 2013, the firm initially provided storage only for Bitcoin through its own digital wallet, though it now supports more than 250 coins and tokens in more than 50 countries around the world. In 2018, the company received a state trust company charter from the South Dakota Division of Banking, which allowed it to become a qualified custodian of cryptocurrencies.
The firm, which claims to process more than 20 percent of all on-chain Bitcoin transactions, also launched staking support for Dash and Algorand back in October 2019, allowing its customers to earn interest on their funds in custody.