In response to the recent investor bulletin from the U.S. Securities and Exchange Commission regarding crypto custody, BitGo CEO Mike Belshe has positioned his company as the only provider offering all the custody options described by the SEC.
All of this happens a few days after BitGo received regulatory approval to operate as a bank, effectively expanding its institutional services.
BitGo claims it can do what no other crypto custodian can do
In a post on X (formerly Twitter), Belshe emphasized that the BitGo exchange allows institutions to combine self-custody and third-party custody into a single hybrid strategy, creating customized risk profiles that no other provider can replicate.
"BitGo stands out as the only provider offering an institutional-grade platform for each option described by the SEC," Belshe wrote. "Our clients no longer have to choose between security and control: they can have both now."
The SEC bulletin, published on December 12, 2025, detailed the fundamentals of crypto custody for retail investors, defining two main models:
Self-custody, in which investors hold their own private keys, and
Third-party custody, in which a qualified custodian manages the assets.
While most providers require clients to choose a model, BitGo allows institutions to use both options simultaneously.
Within the BitGo framework, 90% of client assets can be held in BitGo Trust cold storage, meeting regulatory compliance, insurance, and security standards.
The remaining 10% can be allocated in self-custody hot wallets, allowing for real-time transactions and operational flexibility.
This hybrid approach reduces points of vulnerability: if self-custody keys are lost, the assets in the trust remain safe, while in traditional exchanges, there would be a total freezing of funds in case of insolvency.
BitGo Bank & Trust, NA, a national bank with a federal charter, supports the platform's third-party custody solution. Subject to regular SOC 1 Type 2 and SOC 2 Type 2 audits, the bank supports over 1,400 coins and tokens in segregated accounts, covered by a $250 million insurance policy underwritten by a syndicate of Lloyd’s of London.
According to Belshe, BitGo does not engage in rehypothecation, lending, or commingling of client assets, maintaining strict 1:1 custody standards.
For self-custody, BitGo offers wallets with 2-of-3 Multi-Sig security or MPC threshold. Clients hold two keys while BitGo retains one for co-signing, ensuring policy compliance without compromising autonomy.
Alongside the third-party trust, these options are brought together on a single dashboard, offering clients full transparency, flexibility, and control across different custody models.
BitGo aligns with SEC requests by offering maximum flexibility in custody.
BitGo also addresses the seven questions that the SEC advises investors to ask when choosing a custodian. Among these:
Background checks
Asset coverage
Storage protocols
Asset usage
Privacy protections, and
Fee structure.
By addressing these questions, BitGo demonstrates that institutions can manage their crypto assets securely, compliantly, and efficiently.
As regulators intensify their focus on crypto custody, the BitGo model sets a new benchmark for the industry: a solution that combines compliance, operational control, and insurance coverage on a single platform.
Belshe's statement highlights the growing demand from institutions seeking both the security of qualified custody and the autonomy of self-custody. Such a combination has not been available in a single interface before.
These statements come just days after BitGo received conditional approval to become a national trust bank. Other examples include Ripple, Fidelity Digital Assets, and Paxos.
In a sector where asset security and regulatory compliance are often at odds, BitGo's hybrid model may represent the next evolution of institutional crypto custody.
