BitGo receives US approval to transform into a banking institution, ushering in a new era of regulatory compliance for crypto custody

2025-12-12 16:20:11

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【Blockchain Rhythm】A new breakthrough in the field of crypto asset custody. The U.S. Office of the Comptroller of the Currency recently conditionally approved BitGo’s application for institutional transformation. This well-known custody platform plans to upgrade its trust company in South Dakota to a federally chartered national trust bank.

What does final approval mean? BitGo will be able to directly custody digital assets and some non-deposit financial assets. More importantly— it can provide regulated cryptocurrency-related services nationwide without the need for individual state-by-state filings and approvals. This is a milestone for the entire industry.

From the perspective of institutional investors, this regulatory recognition greatly reduces their concerns about the risks of allocating to crypto assets. Custody security has stronger legal protections, and compliant operations have official endorsement. This step is crucial in promoting traditional financial institutions to enter the Web3 ecosystem and establish a formal asset management system.

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AlgoAlchemist

· 17h ago

Now the path to compliance is finally solidified. BitGo's move was well played. Wait, can this really change anything? It still depends on the follow-up implementation. South Dakota is back again; this state is very friendly to crypto. Regulatory endorsement is a good thing, but will institutions really make a big move? I remain skeptical. The mainstream forces are coming; the days of wildcat players might be over. Once it hits, the industry could be completely transformed. Is this actually bad news for small retail investors? Centralization accelerates. Banking = losing the original intention? Or is it an inevitable step? Custody security + legal endorsement indeed reduces the fear of entry. In simple terms, the US is still tidying up the chessboard, gradually integrating Web3 into the system. A nationwide pass, BitGo is aiming to monopolize the custody market.

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SchrodingerAirdrop

· 12-12 16:48

It was about time. BitGo has finally obtained the "official passport." But to be honest, this is of limited benefit to retail investors; mostly institutional players are the ones benefiting. Regulatory compliance is an inevitable trend, but I worry that future approvals will become increasingly strict.

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BoredApeResistance

· 12-12 16:41

Damn, is BitGo really about to become a formal player? This means institutional players finally have the confidence to enter the market. --- Regulatory approval essentially gives big investors a reassurance, significantly reducing custody risks. --- But on the other hand, is this a good thing or the beginning of complete crypto domestication? It depends on future regulations. --- A universally recognized compliance qualification... Well, from now on, crypto custody might become as competitive as traditional finance. --- BitGo’s move is brilliant; it’s like obtaining a North American pass, putting enormous pressure on other custody platforms. --- Honestly, institutional entry is a good thing, but I’m more concerned about whether retail investors can still play... --- From approval by each state to a one-stop solution, this efficiency boost is impressive. Standardized management has arrived, everyone.

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GateUser-74b10196

· 12-12 16:25

Speaking of BitGo's recent move, it's truly brilliant. They have directly transformed from operating on a state-by-state basis to a nationwide license. Such rapid regulatory approval is indeed rare. Wait, is this really happening? Is traditional finance about to enter the market on a large scale? Regulatory-compliant crypto custody services are getting closer to providing us with professional-grade services. This means institutional investors can finally sleep peacefully, no longer worried about risk control overnight. BitGo has really won this time, saving a lot of approval time at the state level... Changing the topic, why is South Dakota again? Is this state also open to on-chain projects? Regulatory approval is one thing, but whether large funds will actually enter still depends on market reactions. Compliance is definitely a necessary step; it remains to be seen whether more platforms will follow suit. This news should be a reassurance for institutions.

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ProbablyNothing

· 12-12 16:24

Is BitGo finally getting on board with this move? Regulatory endorsement really changes the game. Finally, someone has sorted this out; compliance is the future. Institutional investors probably can't sit still after hearing this news; the risk is really much lower now. Custody definitely needs someone to legitimize it; BitGo being ahead still shows some substance. But to be fair, it really depends on the final approval... don't keep changing your mind again. The trend of traditional finance entering the space is inevitable; resistance is futile. One word: stability. This is the development direction of the ecosystem I want to see.

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