BitGo, a leading crypto custodian, has entered into a preliminary agreement to acquire rival firm Prime Trust. The details of the acquisition remain confidential, and the deal is awaiting regulatory approval.
Prime Trust, whose trust company is based in Nevada, began catering to crypto firms in 2018 and raised $107 million in a Series B funding round that drew investments from Kraken Ventures, Fin CapitalFIS, and Mercato Partners.
The potential acquisition comes amid rumors of Prime Trust’s bankruptcy in the crypto community. If approved, Prime Trust’s Nevada Trust Company would join BitGo’s existing global network of regulated trust companies, which are located across multiple jurisdictions, including Germany, Switzerland, and others. The agreement would also map Prime Trust’s infrastructure to BitGo’s services on a 1:1 basis.
Jor Law, Prime Trust’s Interim CEO and President, stated, “This combined company has a breadth and depth of products, services and experience that no other company could match. We are excited to offer our world-class infrastructure within a broader ecosystem and revolutionize the future of crypto.”
BitGo is backed by Goldman Sachs, Digital Currency Group, DRW, and Galaxy Digital Ventures. The company handles around 20% of global Bitcoin transactions by value and provides services to more than 1500 institutions across the world.
