Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Responding to the latest SEC investor bulletin on crypto custody, BitGo CEO Mike Belshy said his company is the only provider that offers all of the custody options described by the SEC.
This came just days after BitGo received regulatory approval to operate as a bank, effectively expanding its institutional services.
Sponsored
Sponsored
BitGo claims it can do what no other cryptocurrency custodian can do
Belschi confirmed in a post on Platform
Belshy wrote that BitGo is the only provider that provides an institutional-grade platform for every option described by the SEC. He added that BitGo customers no longer have to choose between security and control, as they can have both.
The SEC published its bulletin on December 12, 2025, in which it explained the basics of digital currency storage for individual investors, defining two main models:
- Self-custody, where investors keep their keys, and
- Third-party custody, where a qualified custodian manages the assets.
While most providers require customers to choose only one model, BitGo allows organizations to use both models at the same time.
According to the BitGo framework, 90% of customer assets can be stored in… Keep BitGo Trust coldin accordance with regulatory compliance, insurance and safety standards.
Sponsored
Sponsored
The remaining 10% can stay in self-custodial hot wallets, which allow for real-time transactions and flexible operations.
This hybrid approach reduces individual vulnerabilities. If the self-custody keys are lost, the assets in BitGo Trust remain safe, while in traditional exchanges there is a risk that all funds are frozen in case of failure.
BitGo Bank & Trust, NA, a federal national bank, supports the third-party custody platform option. The bank undergoes regular SOC 1 Type 2 and SOC 2 Type 2 audits, and supports more than 1,400 digital currencies and tokens in segregated accounts, backed by a $250 million insurance policy from Lloyd’s of London pools.
BitGo does not remortgage, lend or commingle customer assets, maintaining custodial standards, Belshy said. 1:1 tight
Sponsored
Sponsored
It provides self-storage customers with a solution as BitGo offers wallets based on… Multisig security 2 out of 3 or MPC threshold. Customers keep two keys while BitGo keeps one key for co-signing, which allows setting control policies without affecting autonomy.
Integration of these options with third-party services in a single control panel, which allows customers complete transparency, flexibility and control of different custody models.
BitGo complies with SEC requirements while providing full custody flexibility
BitGo also noted that it answers the seven questions that the SEC recommends to investors when choosing a custodian. These questions include:
- Background check
- Asset coverage
- Storage protocols
- The use of assets
- Privacy protection, and
- Fee structure.
Sponsored
Sponsored
By answering these questions, BitGo has demonstrated the ability of organizations to manage their digital assets securely, comprehensively and efficiently.
The custody sector has seen ever-tightening regulatory oversight, with the BitGo model setting a new standard in the industry, combining compliance, operational control and insurance coverage in a single platform.
Belschi’s statement highlighted an increase in demand from institutions looking for a combination of qualified custody protection and self-storage autonomy that was not previously available in a single interface.
The announcements came just days after BitGo received conditional approval to become a national credit bank, where other names include Ripple, Fidelity Digital Assets, and Paczos.
In an industry where asset security and regulatory compliance requirements are often in conflict, Bitgo’s hybrid approach represents a new evolution in institutional crypto custody.
