BitGo launches unified token management solution for protocols

Digital asset custody provider BitGo has announced a new solution that the platform says will change the way protocols manage token storage, distribution, and liquidation.

According to BitGo, its Token Management platform offers an automated process that protocols and organizations can leverage to streamline their digital assets. In a press release shared with crypto.news on September 16, BitGo said the solution already benefits top protocols such as Worldcoin (WLD), Sui (SUI), and LayerZero (ZRO).

Instead of having a fragmented system serving stakeholders, projects can use an end-to-end solution for aspects such as token issuance, liquidity management, token unlocking, and on-chain activities such as staking.

BitGo says its solution enables projects to benefit from a compliant, insured platform that brings qualified custody standards to a fragmented market.

21Shares chooses BitGo for ETF custody

The launch of the one-stop crypto asset management platform comes just days after digital asset exchange-traded fund issuer 21Shares selected BitGo as the custodian for its US Spot ETFs. Specifically, BitGo will serve as the custodian for the 21Shares ARK Bitcoin ETF and Core Ethereum (ETH) ETF.

Both ARKB and CETH are set to launch in 2024 after the U.S. Securities and Exchange Commission approved the trading of spot Bitcoin ETFs in January and spot Ethereum ETFs in July.

The 21Shares announcement adds to BitGo’s presence in the crypto ETF market, where the company provides custody services for the Hashdex and Valkyrie crypto ETFs.

Launch of WBTC and competing tokens

BitGo is also the custodian of Wrapped Bitcoin (WBTC), the Bitcoin (BTC) pegged token that allows BTC holders to participate in DeFi.

Recently, WBTC has faced some negative criticism.

This comes after BitGo announced that it would diversify into WBTC custody by partnering with BIT Global, a Hong Kong-based firm with ties to Tron (TXR) founder Justin Sun. Sky, formerly MakerDAO, is considering abandoning WBTC amid this controversy, while Coinbase has hinted at its own product ahead of its cbBTC launch.

Interestingly, 21Shares also announced its own wrapped Bitcoin called 21BTC.