If the deal goes through, Prime Trust’s infrastructure will “map over 1:1” with BitGo‘s services and add another trust company and crypto IRA fund.
If the deal goes through, Prime Trust’s infrastructure Wallet infrastructure provider and digital asset custodian BITGO have signed a non-binding letter of intent to buy fintech infrastructure provider Prime Trust, according to a statement on June 8.
The terms of the deal were not made clear. If the deal goes through, BitGo will buy Prime Trust’s payment rails and Bitcoin IRA fund and add them to its wealth-management offerings.
The Prime Trust Nevada Trust Company will also join BitGo’s network of approved trust companies in South Dakota, New York, Germany, and Switzerland. Prime Trust’s API infrastructure and exchange network will “map over 1:1” with BitGo’s services. According to BitGo’s statement:
“This acquisition makes BitGo the first global digital asset company to provide a full suite of solutions for institutions and fintech platforms.”
Prime Trust’s infrastructure The crypto custody market is changing quickly. In May, Ripple bought Swiss digital asset custody company Metaco for $250 million. Also, technological improvements have an effect on the market.
BitGo signed a term sheet to acquire the equity of Prime Core Technologies, Inc., the parent company of Prime Trust, bringing business continuity, long-term stability and regulated, secure solutions to valued Prime Trust clients.
This acquisition makes BitGo the first global… pic.twitter.com/CUcTUeCFKu
— BitGo (@BitGo) June 8, 2023
The acquisition occurs as the U.S. Securities and Exchange Commission proposes rule changes that would make it more difficult for crypto companies to function as custodians of their customers’ funds.
In January, Prime Trust reportedly laid off a third of its workforce. After the March banking crisis, it stepped in to hold Binance.US customer funds through a network of partner institutions. It was at the center of a scandal in the U.S. state of Oregon last year when it was identified as the source of a $500,000 contribution to the state Democratic Party, which was subsequently determined to have originated from FTX executive Nishad Singh.
Bitgo was almost acquired by Galaxy Digital for $1.2 billion last year; after the transaction fell through, Bitgo sued Galaxy.
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