Crypto custodian BitGo acquires cash-strapped rival PrimeTrust

(Kitco News) - Digital asset custodian BitGo has reached a preliminary agreement to purchase its rival Prime Trust amid rumors that the latter’s ability to service withdrawals has been limited due to the fallout from this week’s enforcement actions by the Securities and Exchange Commission.

According to a statement posted by BitGo on Thursday, the firm has signed “a non-binding term sheet to acquire 100% of the equity of Prime Core Technologies, Inc., the parent company of Prime Trust, a leading provider of financial infrastructure for fintech and digital asset innovators.” At this point, the deal still requires regulatory approval.

As part of the deal, Prime Trust’s Nevada Trust Company would join BitGo’s existing global network of regulated trust companies in South Dakota, New York, Germany, and Switzerland; its fintech API infrastructure and exchange network would be used to “reinforce BitGo Wallet Services and BitGo’s Go Network; and BitGo would incorporate Prime Trusts’s network of banking partners and payment rails, crypto IRA, and “additional wealth management offerings.”