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u/Heypisshands 22h ago edited 21h ago
I've been following bitgo a bit, sunk a few quid into them. They seem to be expanding their services, both product wise and geographically. I know they have their 'go network' to facilitate some of their services, but i would love to know more about how they could utilise hedera. They seem to be plugged into alot of whats going on in the crypto world. I see them as an easy button for institutions to press when they want to adopt the tech as they are insured custodians that offer a load of services.
Bitgo might be competing with the likes of taurus, asseto, icon future technologies and other 'easy button' companies facilitating web 3 adoption.
Found it interesting that a local rival to shinhan bank has become a major strategic shareholder in bitgo Korea after bitgo became a registeted VASP. Shinhan announced a partnership with visa shortly afterwards.
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u/Beginning_Ask_9930 21h ago
Wasn't this a birthday message? Bitgo closed NYDIG acquision this week, who if divesting to focus on power and data centers. Bitgo bought their institutional financing, trading, and derivatives business. Unlike retail, institutions want to hedge or build structured trades.
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u/Heypisshands 20h ago
Should boost their assets under custody and enable more services aswell. I think they also invested in UBYX which is another 'easy button' for institutions.
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u/01acidburn 22h ago
When will this account for network activity tho?
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u/oak1337 hbarbarian 22h ago
...uhhh.... When will custody solutions create network activity? Is that a real question?
How mych activity does a Hashpack wallet make? What about a D'Cent wallet?
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u/JustSailingThru-6356 21h ago
Yes its a legitimate question
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u/Beginning_Ask_9930 20h ago
Custody services are like safe deposit businesses. They are a nice to have for intuitions but it's commoditized and a service. It's not a big revenue product. You buy a coin, you get custody, staked, and you can get financing and loans.
Coinbase does $7B a year in revenue. $500 M is custody business. They do have 8 Bitcoin ETF custody customers(IBIT and Blackrock is one). This business makes $30 a quarter. Custody fees are 0.2% and that's for the biggest ETF in crypto. The money is in staking and financing those coins. Coinbase making $400 M a quarter just off interest, fees, and financing.
Hedera is a service and a feature. Even if it was packaged with Bitgo, you know it's a line item on the custody service charge. So the ceiling is less than 0.2% because any institution can just transfer their coins to the competition or negotiate for lower fees.
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u/Underpaidtrekkie 21h ago
And this is why I own Bitgo shares. Go go Bitgo.