Brink's Makes Strategic Investment in Cryptocurrency Custody Firm BitGo

CryptoNews.com

2024-01-24 11:45:56

Hassan Shittu

Last updated:

January 24, 2024 02:33 EST | 2 min read

Source: iStockOn January 24, Brink’s announced the partnership with BitGo, a cryptocurrency custody firm. As part of this collaboration, Brink’s will serve as BitGo’s global secure logistics and vaulting provider.

BitGo is delighted to partner with @Brinks as we advance financial innovation globally.

Brinks’ commitment to best-in-class security makes them a valuable partner.

Read more on @coindesk 👇

— BitGo (@BitGo) January 24, 2024

While the financial details of the investment were not disclosed, the collaboration signifies the growing importance of secure custody solutions in the digital asset space, particularly as institutions handle significant investments on behalf of clients.

BitGo is a leading player in digital asset security and custody, serving over 1,500 clients across 50 countries and providing solutions for institutional clients managing billions in digital assets. The partnership with Brink’s, known for its secure logistics and global presence in transporting cash and valuables, is expected to leverage the strengths of both companies and enhance physical security capabilities for digital assets.

Notably, in the evolving landscape of digital asset custody, institutions are increasingly seeking secure solutions for managing cryptocurrencies on behalf of their clients. BitGo’s expertise in digital asset security will be complemented by Brink’s global network and experience in secure logistics. BitGo Trust president Jody Mettler said,

“Having a footprint of secure locations globally is important to us as we move into regions like Asia Pacific and EMEA. It means being able to leverage their network and expertise in these regions for security protocols and locations.”

This strategic investment reflects Brink’s recognition of the growing role of digital assets and blockchain in the financial services industry. The collaboration is not Brink’s first venture into the digital assets space; the firm began working with Metaco, a Swiss crypto custody firm, in 2022.

BitGo Also Expands Collaboration with Metaco to Enhance Crypto Settlement Networks

BitGo’s partnership with Brink’s comes nearly three months after the custody provider joined forces with Copper, an institutional digital asset infrastructure firm BitGo said in a press release on November 3, 2023, that the collaboration would allow the firms to expand Go Network and ClearLoop, the companies’ respective off-exchange settlement networks. The networks facilitate global growth in institutional market participation, the companies said at the time.

In October, BitGo announced it had raised $100 million in its Series C financing round, with a valuation of $1.75 billion, backed by major investment firms like Goldman Sachs and Galaxy. The company planned to use the funds raised to make strategic acquisitions and expand BitGo’s regulated custody wallet and infrastructure solutions. Also, BitGo, which is eyeing a global presence, partnered with South Korea’s Hana Bank in September last year.

Since November 2023, BitGo has obtained a crypto custody business license from Singapore’s top financial regulator for a Major Payment Institution (MPI) license through its local entity and the German Federal Financial Supervisory Authority (BaFin). In December 2023, Hashdex selected BitGo as the Bitcoin custodian in its application to become an issuer of a spot exchange-traded fund (ETF) in the U.S. The U.S. Securities and Exchange Commission is expected to approve the first spot BTC ETFs in the United States by January 10.

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