Swan Pledges To Launch New Bitcoin-Only Trust Company With BitGo

Table of Content

Bitcoin-only exchange Swan has announced a partnership with BitGo to launch a Bitcoin-only trust company. The company would require regulatory approval before going live for users.

The announcement allows Swan Bitcoin to showcase how Bitcoin on its exchange will be held in custody in the future.

Ripple’s Acquisition Of Fortress Creates Stir

Swan Bitcoin transitioned from Prime Trust to Fortress Trust and BitGo a few months ago. Last week, Ripple announced it was acquiring Swan Bitcoin’s major custodian, Fortress Trust. This presented a problem for Swan, given that since 2022, Swan Bitcoin CEO Cory Klippsten has been alleging criminal conduct by Ripple executives. Fortress Trust had reportedly lost considerable funds from its hot wallets in a security incident. Swan Bitcoin stated that while Fortress did lose funds, it did not impact any of Swan’s Bitcoin customers.

“Swan client coins are in insured cold wallets at BitGo and did not move during the reported incident at Fortress. The coins are protected by video calls and physical access and are not subject to any incidents at Fortress.”

The acquisition of Fortress caused a stir on social media, especially among Swan users, given Klippsten’s previous statements against Ripple and its executives.

Swan And BitGo Announce New Bitcoin-Only Trust Company

In its announcement, Swan Bitcoin said it would partner with BitGo to launch a “Bitcoin-only Trust Company.” However, the trust would require regulatory approval before making it available to users. According to Swan, the partnership will help address the growing demand for Bitcoin-specific solutions and also address the custody and security requirements within the Bitcoin ecosystem.

Klippsten has stated that they would either acquire an existing custodian or build one. If they acquire an existing custodian, they aim to be live by Q1 2024. However, if they decide to build a new trust, the goal would be to go live by Q3 2024. Speaking about the partnership, the Swan CEO stated,

“We immediately saw the vision. For years, we’ve heard from major clients, partners, and other Bitcoin companies that they would prefer a Bitcoin-only

Go to Source to See Full Article
Author: Amara Khatri

Did you like this?
Tip BTC Newswire with Cryptocurrency