In response to the US Securities and Exchange Commission's latest investor bulletin on cryptocurrency custody, BitGo CEO Mike Belshe states that his company is the only one offering all the custody options that the SEC describes.
This occurs just a few days after BitGo was granted permission to operate as a bank, which broadens their services for institutional clients.
BitGo claims that they can do what no other cryptocurrency custodian can.
In a post on X (Twitter), Belshe emphasized that the BitGo exchange allows institutions to combine self-custody and third-party custody in one strategy. This helps them create their own risk profiles that no one else can offer.
"BitGo is unique in offering an institutional platform for every option the SEC describes," Belshe wrote on X. "Our clients do not have to choose between security and control — they can have both."
The SEC bulletin, released December 12, 2025, outlines the basics of cryptocurrency custody for retail investors and showcases two main models:
Self-custody, where the investor holds their own private keys, and
Third-party custody, where a qualified custodian manages the assets.
Most companies allow customers to choose a model, but BitGo enables institutions to use both simultaneously.
According to BitGo's model, 90% of customers' assets can be in BitGo Trust cold storage, which meets the requirements for regulation, insurance, and security.
The remaining 10% can be held in self-custodied hot wallets, providing quick access and flexible usage.
This hybrid reduces risks. If you lose the keys for self-custody, the assets held in trust remain secure. Traditional exchanges risk freezing all funds in bankruptcy otherwise.
BitGo Bank & Trust, NA, a U.S. national bank, backs the platform's third-party custody. The bank undergoes regular SOC 1 Type 2 and SOC 2 Type 2 audits and supports more than 1,400 coins and tokens in separate accounts. Additionally, there is an insurance from Lloyd's of London for $250 million.
According to Belshe, BitGo does not reuse customers' assets, does not lend them out, and does not mix them. The company has strict 1:1 custody.
For self-custody, BitGo offers wallets with 2-of-3 Multi-Sig or MPC security. The customer has two keys, BitGo has one, allowing the customer to control the rules without losing oversight.
Alongside third-party custody, these options are available in a single dashboard, providing full support for transparency, flexibility, and control over all custody methods.
BitGo follows the SEC's inquiries and offers full flexibility for custody.
BitGo also addresses the seven questions the SEC thinks investors should ask when choosing custodians, including:
Background check
Asset coverage
Custody protocols
Asset usage
Protection of personal information, and
Fee structure.
By addressing these questions, BitGo demonstrates that institutions can manage their crypto assets securely, in compliance with regulations, and efficiently.
As regulators scrutinize cryptocurrency custody more rigorously, BitGo's model sets a new standard where legal requirements, control, and insurance can be consolidated on a single platform.
Belshe indicates that more institutions want both secure qualified custody and self-custody with their own control. Previously, it was not possible to achieve both in a single tool.
The statement comes just days after BitGo received conditional approval to become a national trust bank. Others include Ripple, Fidelity Digital Assets, and Paxos.
In an industry where security and regulations often clash, BitGo's hybrid model could be the next step for institutional cryptocurrency custody.
