Digital Assets: BitGo Goes The Whole Nine Yards; Buys Harbor, Subsidiaries and All
BitGo reaches beyond custody to become a “full-stack” provider of digital services.
BitGo, the leader in crypto custody services, acquires Harbor, the top name in digital securities. It’s a diversification move aiming at a role in the entire transaction chain of digital assets. In the deal, BitGo gets Harbor’s digital securities platform, as well as its broker-dealer and transfer agent subsidiaries. Financial terms of the transaction are not known. (Finextra)
BitGo serves institutional investors with custody, compliance and security solutions. It is responsible for billions of dollars worth of assets in custody and processes a fifth of all worldwide bitcoin. “Our vision has always been bigger than wallets and custody, and acquiring Harbor furthers BitGo’s vision of building a new digital infrastructure for financial services,” said Mike Belshe, CEO, BitGo, in a statement.
The acquisition marks the first time a single entity in the cryptocurrency space holds broker-dealer, transfer agent, and qualified custodian licenses, Belshe said to CoinTelegraph.
Further, on market infrastructure, he added that the firm was trying to build in a short time what the existing traditional market had taken decades to achieve.
BitGo buys Harbor
“Harbor streamlines the alternative investment experience for investors, issuers and their placement agents, and unlocks liquidity options for traditionally illiquid assets,” their website says. “Harbor’s digital platform automates the manual processes of alternative investment subscriptions, investor management, and secondary transfers.”
The SEC granted a transfer agent license to Harbor in November 2019.
Harbor, therefore, is the first blockchain company to hold both a broker-dealer license and a transfer agent license.
“We believe participants will ultimately need trusted, full-stack solutions for digital currencies and now BitGo is well-positioned to address institutional requirements as the market develops,” said Josh Stein, CEO, Harbor. “BitGo has been an important partner since Harbor’s inception. We’ve worked closely together to integrate BitGo Business Wallets and BitGo Custody into Harbor’s services.”
Leading venture capital firms such as Andreessen Horowitz, Craft Ventures, Fifth Wall, Valor Equity Partners, and VY Capital are investors in Harbor.
However, according to The Block, Harbor’s proposed deal to tokenize a high-profile dorm accommodation fell through. It also could not make much headway in a project that tokenized venture capital firm funds. Apparently, it is hamstrung by the slow development of a secondary market for the trading of security tokens.
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