Following the latest investor bulletin published by the U.S. Securities and Exchange Commission (SEC) regarding crypto custody, BitGo CEO Mike Belshe positions his company as the only platform offering all custody options defined by the SEC.
This development comes just a few days after BitGo received legal approval to operate as a bank. Thus, the company's corporate services have been further expanded.
BitGo: Claims to Have Achieved What Other Crypto Custodians Could Not
Sharing on X (Twitter), Belshe emphasized that through BitGo's cryptocurrency exchange, institutions can combine their self-custody and third-party custody models into a single hybrid strategy, thus creating unique risk profiles that no other provider can offer.
‘BitGo stands out as the only provider offering an institutional-grade platform for all the options defined by the SEC,’ wrote Belshe. ‘Our clients no longer have to choose between security and control—they can have both simultaneously,’ he said.
In the bulletin released by the SEC on December 12, 2025, the fundamentals of cryptocurrency custody for individual investors were outlined, and two main custody models were defined:
Self-custody: Investors holding their private keys directly,
Third-party custody: Assets managed by a qualified custodian.
While many providers only require the selection of one model, BitGo allows institutional clients to use two models simultaneously.
With BitGo's framework, 90% of customer assets can be stored in BitGo Trust cold storage environments. This ensures compliance with regulatory, insurance, and security standards.
The remaining 10% can be held in self-custody hot wallets; this allows for instant transaction capability and operational flexibility.
This hybrid approach prevents a single point of failure from causing disaster across the entire system. For example, even if keys in self-custody are lost, assets within the trust remain secure. In contrast, a potential bankruptcy at a traditional cryptocurrency exchange can jeopardize all funds.
The authorized BitGo Bank & Trust, NA, across the U.S. forms the backbone of the platform's third-party custody model. The bank is regularly subjected to SOC 1 Type 2 and SOC 2 Type 2 audits. The security of over 1,400 coins and tokens held in separate accounts is supported by a $250 million insurance policy provided by Lloyd's of London syndicates.
According to Belshe, BitGo does not re-hypothecate, lend, or commingle customer assets. All clients are provided with 1:1 custody standards.
For self-custody, BitGo provides wallets with 2/3 Multi-Sig or MPC threshold security. Customers hold two keys while BitGo retains the third key, allowing for policy control in transactions that require joint signatures—authority remains with you without compromising security.
This third-party trust and self-custody option is combined into a single panel. Customers are provided with full transparency, flexibility, and control among all custody models.
BitGo: Complying with SEC's Questions, Offering Flexible Custody Solutions
BitGo also responds to the seven questions that the SEC recommends investors ask when selecting a custody platform. These include:
Historical checks
Asset assurance
Storage protocols
Asset usage type
Privacy protections
Fee structures.
By answering these questions, BitGo demonstrates that institutional investors can manage their crypto assets safely, legally, and efficiently.
As regulators increase scrutiny in the cryptocurrency custody space, BitGo's model sets a new standard for the industry: an integrated structure that offers compliance, operational control, and insurance coverage on a single platform.
Belshe's statement highlights the growing need among institutions that demand both qualified custody security and the freedom of self-custody. Previously, these two options were not offered together on the same platform.
These statements came just a few days after BitGo received conditional approval to become a national trust bank. Among those receiving this approval are Ripple, Fidelity Digital Assets, and Paxos.
In this industry where asset security and regulatory compliance often conflict, BitGo's hybrid model could be the next evolution in institutional cryptocurrency custody.
