The BitGo startup announced today, July 10th, that it would begin to support 57 Ethereum ERC20 tokens. The company seeks to increase its services among institutional investors and list more than 100 cryptos by the end of 2018. The product offered by BitGo will meet the demand for the protection of private keys that act as keys to crypto actives, according to CoinDesk.
The ERC20 token is an interface that seeks to ensure interoperability between tokens. In other words, it is a set of Ethereum (ETH) tokens that are adjusted to different parameters.
Benedict Chan, CTO of BitGo, explained that the company has realized that there is a growing need for custody solutions for alternative cryptos. Chan refers to corporations that are already in the cryptocurrencies market or those that are thinking of entering this ecosystem.
These institutions, in general, do not want to self-manage their currencies. They’re looking for someone who can handle multiple cryptocurrencies.
Benedict Chan, BitGo CTO
BitGo addresses institutional cryptocurrency investors with it new additions
BitGo will support Kin cryptocurrency, which has been developed by the Kik instant messaging application, and Civic (CVC), which runs on a blockchain identity protection venture, as well as other native tokens for decentralized exchanges. According to Isaac Eleftheriadis, BitGo’s product manager, “every token added in this first batch was explicitly requested by BitGo’s institutional customers.”
“There were cases where customers asked us to support their ERC20 token. They don’t want to do the ICO until BitGo can retain all their tokens,” Eleftheriadis added.
Companies looking for this type of service are those that invest in cryptos and need a custody platform, and one of their needs is for “hot wallets” to enable them to safely and rapidly mobilize deposits or withdrawals of cryptocurrencies.
On the other hand, some customers also need “cold wallets” with the intention of keeping the cryptos without any risk thinking more about the medium and long-term investments.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.