In response to the recent announcement regarding digital asset custody by the U.S. Securities and Exchange Commission (SEC), BitGo CEO Mike Belshe has positioned his company as the sole provider offering the full range of custody options outlined by the SEC.
This occurred just a few days after BitGo received regulatory approval to operate as a bank, thus effectively expanding services for institutions
BitGo claims to do what other crypto asset custodians cannot
In a post on X (Twitter), Mr. Belshe emphasized that the BitGo platform allows organizations to integrate self-custody and third-party custody into a single hybrid strategy, creating a risk profile on demand that other providers cannot match
BitGo remains the only provider offering platform solutions for enterprises with all options specified by the SEC. Mr. Belshe wrote that our clients no longer have to choose between security and control, as they receive both
The SEC announcement published on December 12, 2025, outlined the fundamentals of crypto asset custody for retail investors, defining the core model into two formats
Self-custody means investors hold their own private keys, and
Third-party custody refers to a certified custodian that manages assets on behalf of others
While most service providers often force clients to choose between two models, BitGo allows organizations to use both simultaneously
According to BitGo's structure, 90% of clients can hold assets in BitGo Trust cold storage, which complies with regulatory, insurance, and security standards
The remaining 10% can remain in self-custody hot wallets for liquidity and real-time transactions
This hybrid approach reduces the single point of failure, as if the self-custody key is lost, the assets in trust remain safe, whereas traditional trading markets may risk freezing all assets in case of bankruptcy
BitGo Bank & Trust, NA, a federally chartered bank in the U.S., drives this third-party asset custody option with regular SOC 1 Type 2 and SOC 2 Type 2 audits, and supports over 1,400 coins and tokens in dedicated segregated accounts, protected by a USD 250 million insurance policy from Lloyd’s of London syndicates
As Belshe stated, BitGo does not lend or commingle customer assets under any circumstances and maintains a strict 1:1 custody standard
For self-custody, BitGo offers a wallet service that uses a 2-of-3 Multi-Sig or MPC threshold security system, where clients hold two keys while BitGo holds one to co-sign, enabling policy control without losing independence
Alongside third-party trust management, these options are integrated into a single dashboard, providing all clients with transparency, flexibility, and full control over each asset custody model
BitGo aligns with the SEC's inquiries while offering full asset custody flexibility
BitGo also answers the seven questions that the SEC recommends investors ask when choosing a custodian, which include
Background checks
Asset coverage insurance
Storage standards
Asset utilization
Privacy protection, and
Fee structure
When these questions are answered, BitGo demonstrates that institutions can manage their crypto assets securely, legally, and efficiently
As regulators increasingly scrutinize crypto custody more closely, BitGo's model sets a new standard for the industry by integrating legal compliance, operational controls, and insurance into a single platform
Belshe's statement reflects the increasing demand from institutions seeking both security from expert custody and independence in self-custody, a combination that has never been available in a single interface before
This statement came just a few days after BitGo received conditional approval to become a national trust bank, alongside others like Ripple, Fidelity Digital Assets, and Paxos
In sectors where asset security and regulatory compliance often conflict, BitGo's hybrid model may be the next evolution of crypto asset custody for institutions
