BitGo Reveals Initial Agreement for Acquisition of Prime Trust Custody Firm

BitGo Holdings, Inc., has expressed its intent to acquire Prime Core Technologies, Inc., the parent company of Prime Trust. 

In a blog post by BitGo, the acquisition is highlighted as a means to provide Prime Trust clients with regulated, secure services, along with enhanced business continuity and long-term stability.

Prime Trust conveyed its enthusiasm for the prospective partnership, with Jor Law, the Interim CEO and President of Prime Trust, expressing his belief that the collaboration between Prime Trust and BitGo will bring about a transformative impact on the industry. 

Law stated that the combined company would possess an unparalleled range of product and services, as well as extensive experience. He further emphasized their excitement to provide their exceptional infrastructure within a larger ecosystem.

The blog post outlined several advantages that the acquisition could bring to both companies. It highlighted that Prime Trust's Nevada Trust Company would become part of BitGo's worldwide network of regulated trust companies, which currently encompasses entities in South Dakota, New York, Germany, and Switzerland. This inclusion would expand BitGo's presence and regulatory jurisdiction. 

Additionally, the blog explained that Prime Trust's fintech API infrastructure and exchange network would strengthen BitGo's existing services, such as custody, liquidity, settlement, and compliance capabilities.

According to Mike Belshe, the CEO and Co-Founder of BitGo, the acquisition represents a significant milestone that will play a crucial role in establishing a more secure and sustainable future for the digital asset landscape.

"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 Belshe.

The transaction is currently pending regulatory approval, and specific details regarding the deal have not yet been revealed.

In recent developments, Bitcoin-only exchanges Strike and Swan have made announcements regarding their shift away from custody services provided by Prime Trust. 

Strike stated its intention to utilize its own custody services, while Swan revealed its decision to transition to Fortress Trust and BitGo for custody. It is noteworthy that Fortress Trust was founded by Scott Purcell, the former founder of Prime Trust.

The acquisition announcement did not provide any confirmation or address the rumors surrounding Prime Trust's alleged insolvency.