Digital Asset Trust Firm Bitgo Sets Sights on Prime Trust Acquisition 

In a latest growth, Bitgo, the digital asset belief agency, disclosed that it has penned a letter of intent to accumulate Prime Trust, a crypto custodian based mostly in Nevada. Should the acquisition proceed, Prime Trust would develop into an integral a part of Bitgo’s community of regulated belief corporations.

Bitgo Signs Letter of Intent to Acquire Crypto Custodian Prime Trust Amid Speculative Chatter

Bitgo studies that they’ve signed a letter indicating their intent to accumulate Prime Trust. The announcement follows speculative chatter and multiple rumors on social media that suggest Prime Trust was grappling with monetary struggles and potential chapter. Last 12 months, Prime Trust discovered itself in a authorized dispute with the now-defunct crypto lender Celsius after they accused the custodian of failing to return $17 million in crypto property in August 2022.

In October 2022, Prime Trust consented to return the $17 million and acknowledged that it will switch the funds to a pockets designated by Celsius. Prior to Celsius’ grievance in August, the custodian had secured $107 million throughout a Series B funding spherical over a month earlier in June. Preceding the Series B, Prime Trust’s Series A spherical raised $65 million in July 2021. Following the crypto winter in 2022, nonetheless, two unnamed sources reported that Prime Trust laid off one-third of its staff in early 2023.

On June 8, 2023, Bitgo unveiled its intention to acquire Prime Trust and acquire full fairness from mum or dad firm Prime Core Technologies.

“This is a landmark transaction, leading a greater shift in the digital asset landscape toward a more secure and sustainable future,” Bitgo CEO and co-founder Mike Belshe stated on Thursday. “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.”

Prime Trust collaborated with entities similar to Abra, Okcoin, Augeo, Swan Bitcoin, and Trusttoken. Swan Bitcoin disclosed this May that it had shifted its property into custody with Fortress Trust and Bitgo. Speculation has additionally circulated on social media relating to Scott Purcell founding each Prime Trust — which he left in August 2021 after over 5 years — and Fortress Trust in October 2021. In a Linkedin post, Purcell rejected any connection between the 2 corporations, highlighting he exited Prime Trust two years prior.

“There is absolutely zero connection between Fortress Trust and Prime Trust,” Purcell wrote. “Quite the opposite as at times we find ourselves competing with them. We are a very different company, from our exec team to our technology infrastructure.”

On Thursday, Bitgo introduced that incorporating Prime Trust’s infrastructure and alternate community will fortify Bitgo’s choices when it comes to “custody, liquidity, settlement, and regulatory compliance.” Additionally, the Palo Alto-based agency will purchase Prime Trust’s banking companions, crypto IRA, and current fee networks if the acquisition materializes. “The combination of Prime Trust and Bitgo would be a significant enhancement for the industry,” acknowledged Jor Law, Prime Trust’s interim CEO and president on Thursday.

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