2023-6-23 23:00 |
BitGo, a leader in digital asset trust and security, has announced that it has terminated its acquisition of Prime Trust, a technology-driven financial institution that provides custody and escrow services for the digital asset industry.
The decision was made after considerable effort to find a path forward with Prime Trust, but ultimately, BitGo encountered insurmountable challenges that made it impossible to move forward with the acquisition.
BitGo And Prime Trust Part WaysOn June 8th, 2023, the company announced signing a non-binding term sheet to acquire 100% of the equity of Prime Core Technologies, Inc., the parent company of Prime Trust.
The acquisition was expected to bring business continuity, long-term stability, and regulated, secure solutions to Prime Trust’s clients. With this acquisition, BitGo could have become the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms.
In the June 8th announcement, Mike Belshe, CEO and Co-Founder of BitGo, expressed excitement about the landmark transaction, stating that it would lead to a greater shift in the digital asset landscape toward a more secure and sustainable future.
He added that the acquisition would enhance the firm’s best-in-class, trusted solutions and enable the company to service the combined customer base.
The acquisition was seen as a significant enhancement for the industry, as it combined BitGo’s strong balance sheet, operational standards, and credibility with Prime Trust’s world-class infrastructure, fintech API, and network of banking partners and payment rails.
This combination was expected to revolutionize the future of crypto and reinforce BitGo Wallet Services (BWS) and BitGo’s Go Network – custody, liquidity, settlement, and compliance capabilities to map over 1:1.
However, while the specific challenges were not disclosed, the termination of the acquisition is a setback for BitGo’s mission to deliver trust in digital assets.
The company has a strong reputation in the industry for its secure custody and multi-signature wallet solutions, and the acquisition of Prime Trust was seen as a strategic move to expand its capabilities and reach.
In a statement, BitGo expressed regret over the decision and acknowledged the hard work and dedication of the Prime Trust team. The company also emphasized that it remains committed to its mission of delivering trust in digital assets and will continue to explore opportunities to expand its offerings and capabilities.
The acquisition by BitGo was seen as a significant opportunity for the company to leverage the expertise and resources of a larger player in the industry. However, with the acquisition now off the table, Prime Trust may need to explore other paths to growth, such as partnerships or collaborations with other companies in the industry.
Overall, while the termination of the Prime Trust acquisition is a disappointment for both companies, BitGo says its commitment to delivering trust in digital assets remains strong.
Featured image from Unsplash, chart from TradingView.com
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