BitGo Custody Now Supports BCAP Security Tokens

Crypto wallet and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term security firm BitGo has expanded its suite of custody products and services to support Blockchain Capital’s BCAP security tokens. The token represents a fractional non-voting economic interest in Blockchain Capital’s tokenized venture capital fund focused on digital assets.

The company says the addition of the world's first ever security token, which was launched in a $10 million ICO back in April 2017, to the service will be very promising and a first-mover advantage.

Blockchain Capital, founded in 2013, is a venture fund that gives an opportunity for BCAP token holders to gain exposure to companies operating within the blockchain industry. The tokenized investment fund has financed over 70 companies and projects since its inception.

“In addition to multi-signature wallet security, BitGo clients can custody their BCAP assets with BitGo Trust Company, a qualified custodian that provides compliant custody for security tokens,” the Palo Alto-based startup said in a statement.

BitGo’s patent multi-signature wallet technology has attracted institutional players because it offers an enterprise-grade custody service for their assets as well as application programming interface access to its underlying security platform. BitGo’s multisig e-wallets require a transaction to have two or more signatures before it can be executed, a security layer that reduces the risk of fraud.

Secure Access to Crypto Markets

"We wanted to ensure that our custody solution for BCAP would be completely secure while easy to manage. When we compared custody offerings, BitGo's solution was far ahead of the other options in both design and security, so we're excited to partner with them," said Brad Stephens, Co-Founder and Managing Partner of Blockchain Capital.

The step reflects the surge in demand for custody solutions for altcoins and other tokens and not just leading Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, such as Ethereum and Bitcoin. Although this will have a profound impact on the crypto market, especially in the long-term, dealing with smaller cryptocurrencies is related to higher risks.

All the tokens recently added by BitGo, as well as those of the first batch, which covered only seven assets, were requested by the company’s institutional clients, it says. In April 2018, BitGo launched support for ERC20 tokens, and in July it added 57 coins and tokens.

“Security tokens are an increasingly important asset class for institutional investors and BitGo is here to support them. As a qualified custodian, we recognize how critical compliance is for our clients and we’re pleased to be able to provide custody services that are compliant with securities regulations. This is a major step forward for mainstream adoption,” adds BitGo CTO Ben Chan.