The South Dakota Division of Banking approved the BitGo's request to create a custodial solution for cryptocurrencies focused mainly on institutional investors.

BitGo announced that it was granted approval by the South Dakota Division of Banking to create a cryptocurrency store for institutional investors, which will be operated by BitGo Trust. The decision will enter into force 30 days after the date of its issue.

“Custody has been the missing piece of cryptocurrency market infrastructure and this gap has kept institutional investors out of the market,” said Mike Belshe, CEO, BitGo. “Traditional custodians don’t have experience handling cryptocurrency. Exchanges that double as custodians present a conflict of interest and raise regulatory concerns. BitGo Trust Company is a qualified custodian, and therefore the only custody offering that delivers the highest levels of both security and regulatory compliance.”

BitGo delivers cryptocurrency storing services "in bank-grade Class III vaults", provides round-the-clock support and accepts more than 75 digital assets for storage.

According to bitcoin billionaire Mike Novogratz, the cryptocurrency market lacks of necessary infrastructure, especially of safe storages, and it is one of the main obstacles preventing institutional investors from entering the market.

“Think about how institutional investors operate. It’s hard to tell your boss ‘I have money in places you have never heard of.’ You need a trusted, name custodian — a Japanese bank or HSBC or ICE or Goldman Sachs — to allow institutional investors to feel comfortable.”

Earlier, the US-based crypto exchanges Coinbase and Gemini announced the launch of their custodian services, also focused on institutional investors. The siilar plans were announced by the Canada-based VersaBank, the South Korean Shinhan Bank, and the Hong Kong-based managing company Fusang Investment. According to rumors, Goldman Sachs is also consedring the possibility of creating a crypto storage.

According to the company, BitGo is the world's largest processing service of on-chain bitcoin transactions, processing 15% of all global bitcoin transactions, and $15 billion per month across all cryptocurrencies.