In response to the US Securities and Exchange Commission's recent bulletin to investors about crypto custody, BitGo CEO Mike Belshe has positioned his company as the only provider offering all the custody options described by the SEC.
This happens just days after BitGo received regulatory approval to operate as a bank, significantly expanding the company's institutional services.
BitGo claims it can do what no other cryptocurrency custodians can.
In a post on X (Twitter), Belshe emphasized that the BitGo exchange enables institutions to combine self-custody and third-party custody in a hybrid strategy, allowing for the creation of customized risk profiles that no other providers can match.
“BitGo stands alone as the only provider delivering a top-tier institutional platform for all the options described by the SEC,” wrote Belshe. “Our customers no longer need to choose between security and control—they can have both.”
The SEC's bulletin, issued on December 12, 2025, described the basics of crypto custody for private investors and defined two main models:
Self-storage, where investors hold their own private keys, and
Third-party storage, where a qualified actor manages the assets.
While most providers require customers to choose one model, BitGo allows institutions to use both simultaneously.
In BitGo's system, 90% of customers' assets can be stored in BitGo Trust cold storage, ensuring compliance with regulatory requirements, insurance, and security.
The remaining 10% can be held in self-custodied hot wallets, enabling real-time transactions and flexibility in operations.
This hybrid approach reduces the risk of single points of failure. If keys to self-custody are lost, the assets in the trust remain safe—while traditional exchanges risk freezing all funds if insolvency occurs.
BitGo Bank & Trust, NA, a nationally chartered bank, forms the foundation of the platform's third-party custody solution. The bank conducts regular audits under SOC 1 Type 2 and SOC 2 Type 2 standards, and supports over 1400 coins and tokens in separate accounts, with an insurance agreement of $250 million from Lloyd’s of London syndicates.
According to Belshe, BitGo does not rehypothecate, lend, or commingle customers' assets, and maintains strict 1:1 custody standards.
For self-custody, BitGo offers wallets with 2-of-3 Multi-Sig or MPC threshold security. Customers retain two keys while BitGo has one for co-signing, allowing for policy management without relinquishing independence.
Together with third-party trust, these options are consolidated into one dashboard, providing customers with full transparency, flexibility, and control across various custody models.
BitGo adapts to SEC questions and offers full flexibility for custody
BitGo also addresses the seven questions that the SEC recommends investors ask when selecting a custodian. These include:
Background check
Asset coverage
Storage protocols
Use of assets
Privacy, and
Cost structure.
By answering these questions, BitGo shows that institutions can manage their crypto assets in a secure, legal, and efficient manner.
As regulators scrutinize crypto custody more closely, BitGo's model sets a new standard in the industry: a model that unites compliance, operational control, and insurance coverage on a single platform.
Belshe's statement underscores the growing demand from institutions seeking both the security of qualified custody and the independence of self-custody. Such a combination has not previously been available in one solution.
These statements come just days after BitGo received conditional approval to become a national trust bank. Other companies that have received similar approvals include Ripple, Fidelity Digital Assets, and Paxos.
In a sector where asset security and regulatory compliance often conflict with each other, BitGo's hybrid model may represent the next step in the evolution of institutional crypto custody.
