BitGo is processing more than 20 percent of bitcoin transactions, the company said at CoinDesk’s Invest: NYC conference today.
The announcement by the crypto custodian and issuer of hot and cold storage wallets means that a sizable share of on-chain transactions pass through its services, a sign of consolidation, and power, in the crypto space.
It also raises questions about market collapse: If BitGo goes down, would those assets be at risk? But when asked that question directly, BitGo CEO Mike Belshe, on stage at “The Shape of Things to Come: Crypto Custody in a Proof-of-Stake World” panel, said there was nothing to fear.
“The big thing we do is try to remove single points of failure,” Belshe said. BitGo’s multi-signature key system secures assets, even if one layer gets breached – the clients hold the keys, he said.
Belshe credited BitGo’s growth to customers’ value of their multi-sig security.
In a statement, he said: “It is a great assurance to our clients that they are always in control of their own assets no matter the circumstances. BitGo is their trusted partner that is focused on making the market for digital assets bigger, stronger and more secure every day.”
BitGo has invested recently in off-chain settlement systems, launching one aimed at institutional clients in May.
Mike Belshe image via CoinDesk archives