BitGo Makes Room for 57 Additional ERC-20 Tokens

Wallet provider BitGo is going to add support for 57 new Ethereum-based tokens, according to CoinDesk.

Background

The aim of BitGo is to integrate cryptocurrency into the global financial system by making it safer – its website begins with “Making digital currencies usable for business in a regulated economy.” Its customers, which include the Royal Mint and CME Group, transact more than $10 billion a month, according to its website.

Time to buy the dip?

Insitutions are attracted to the company because it offers a multisignature wallet, which is a form of cryptocurrency storage that will not release coins without receiving more than one key.

BitGo was founded in 2013 and is based in California. In February 2015 it became the first wallet provider to set up a theft insurance policy, under the terms of which customers pay a flat 1 percent fee and are eligible for coverage of up to $250,000. It took the insurance company nine months to approve the system, according to the Wall Street Journal.

By September of that year it was reported that the company had processed more than $1 billion of Bitcoin transactions in a single financial quarter.

In January 2017 it further enforced its security measures by partnering with Ledger to offer a physical offline cryptocurrency wallet, and in February was selected by Ripple to design a wallet for XRP.

In December of that year it raised $42.5 million in funding.

New assets

Ethereum tokens have the format ERC-20. Product manager Isaac Eleftheriadis said: “There’s been cases were customers asked us to support their ERC-20 token. They don’t want to do the ICO yet until all their tokens can be held by BitGo.”

According to CoinDesk, the company is planning to offer support for more than 100 cryptocurrencies by the end of this year. CTO Benedict Chan told the news source: “These institutions, they generally don’t want to self-manage their coins. They are looking for someone that can support multiple coins.”

Robin Verderosa, VP of product marketing, said: “What we’ve learned is that they’re [institutions] interested in investing in a basket of coins and tokens that kind of help hedge the market and give better returns.”

Product manager Isaac Eleftheriadis now heads an 11-person BitGo team focused on rising cryptocurrencies and tokens.