Coinbase and BitGo reaffirm their intention to focus on institutions serving Crypto
Two US encryption giants, Coinbase and BitGo, will continue to facilitate growing demand for Bitcoin from institutional investors by acting as trusted depositories.
Earlier this week, BitGo was approved by South Dakota regulators to create and operate a cryptographic preservation solution, while Coinbase established a new office in New York exclusively to handle institutional demand in the market.
Bitcoin needs new capital, the institutional demand will do
In an interview with CNBC Fast Money, BitGo's CEO, Mike Belshe, said the cryptocurrency market needed additional capital to launch a new recovery in the medium term and recover from its correction of 80 percent. 2018.
Belshe said the market has not seen many new buyers emerge in the last eight months. But with the introduction of several encryption solutions offered by BitGo, Coinbase and potentially regulated financial institutions such as Goldman Sachs, Citigroup and Morgan Stanley, the Bitcoin market will reach billions of dollars in new capital.
He explained:
"What Bitcoin needs is new capital, so we have not seen a lot of new buyers coming in. So, since Wall Street is that, yes, Bitcoin needs it, and I can tell you anecdotally begins to move a little feet, but it took them much longer than expected ... This [product of guard] makes me much more optimistic, and [maybe] the solution [that institutional investors expected] . "
Initially, in 2013, BitGo was launched as a multi-channel security system, providing multi-signature security services to protect large-scale exchanges such as Kraken, Korbit and UPbit, the largest cryptocurrency exchange in South Korea.
As the cryptocurrency market began to evolve, BitGo acquired Kingdom Trust, a trusted custodian that oversees more than $ 12 billion in assets to facilitate the demand for Bitcoin institutions. Finally, in September, BitGo received approval from the US government to operate a crypto-guard and is now preparing to serve the institutions.
BitGo's entry into the Bitcoin institutional market and the expansion of Coinbase's cryptographic preservation service, launched in July, should eliminate the last barrier between institutions and the cryptographic market that prevented large investors from engaging in the market. new asset class. .
$ 20,000 in 2017 without institutions
In his interview, Belshe stressed the need for a new wave of capital in the cryptocurrency market. But in 2017, Bitcoin reached a high of $ 19,500, the price of BTC exceeding $ 24,000 in South Korea, without the participation of institutions.
Investors remain very optimistic about the long-term growth of the market and what the cryptocurrency market would be with the participation of pension funds, hedge funds and a wide range of institutions.
At this rate, as billionaire investor Mike Novogratz has said, the next crypto rally could be fueled by the fear of running out (FOMO) among institutional investors, as long as the infrastructure is robust enough to meet demand .