Cryptocurrency custodian BitGo has reached a preliminary agreement to acquire Prime Trust, another crypto custodian regulated in the state of Nevada, according to a source close to the matter.
According to the source, the deal is preliminary and still requires regulatory approval.
Prime Trust has been the subject of some speculation from online sources, who suggest that the firm is facing bankruptcy. The financial terms of the deal were not disclosed by the source.
Prime Trust was established in 2016 as a trust company providing custody, compliance and liquidity solutions for the digital economy.
Especially for corporate customers and high net worth individuals, the need to store and store cryptocurrencies has brought the storage of digital assets to the forefront, many options have been presented and companies have high values. This issue also caught the attention of the US Securities and Exchange Commission (SEC) and suggested making rules on custody matters.
BitGo was founded in 2013 as a multi-signature security company that aims to make digital assets more secure and accessible. It later expanded its services to include enterprise-grade custody, trading and lending solutions for crypto assets.
*Not investment advice.