BitGo Adds 57 Ethereum Tokens In Largest-Ever Custody Service Expansion

The security startup BitGo exclusively told CoinDesk on Tuesday, July 10, it will expand its suite of custody products and services to support 57 new ethereum assets, a move driven by demand for services that safeguard private keys - the alphanumeric strings that act as passwords for crypto assets - and that, once lost, are gone forever.

Founded in 2013, BitGo has become an industry leader managing wallets at crypto exchanges, but to date, its service has been limited to larger protocols like bitcoin and ethereum.

The addition of ethereum tokens could be a key first-move advantage.

According to BitGo CTO Benedict Chan, there has been a surge in demand for custody solutions for alternative crypto assets such as the kind it's now adding.

Equally notable to the potential industry impact is how BitGo is taking steps to ensure the quality of its service given the risks inherent in dealing with smaller cryptocurrencies.

When BitGo debuts support for dozens of cryptos today, it will include those offered by Kin by the chat messaging app Kik, several native tokens for decentralized crypto exchanges and the blockchain identity crypto Civic, a startup BitGo began experimenting with in 2017.

It's a reality that's had an impact operationally, as product manager Isaac Eleftheriadis now heads an 11-person BitGo team focused on rising cryptocurrencies and tokens.

Some token issuers themselves have also become BitGo clients.

Regardless of Feldmeier's point that most breaches involve exchanges, hackers exploited such a smart contract bug in 2017 to steal $30 million worth of ethereum tokens from Parity wallet users.

Luckily for institutional investors, startups like BitGo and Smart Valor are prioritizing secure custody for tokens, not just bitcoin.