finance news

BitGo buys Harbor to expand into digital securities industry

BitGo buys Harbor to expand into digital securities industry
BitGo buys Harbor to expand into digital securities industry
BitGo, a leading provider of blockchain financial services, has reportedly announced the acquisition of Harbor, a security token platform known for a failed bid to provide tokenized shares of a high raised building located in South Carolina.

As per the reports by the company, the subsidiaries of Harbor, including a broker-dealer monitored by the Financial Industry Regulatory Authority as well as a transfer agent managed by the Securities and Exchange Commission, are also included in the takeover. The move permits BitGo to extend its services from custody, thereby becoming full-fledged service provider across the digital securities space as stated by BitGo CEO.

Mike Belshe, CEO, BitGo, stated that the acquisition basically allows BitGo to reinvent all parts of the conventional financial system, BitGo being a licensed custodian through the South Dakota Division of Banking.

Belshe further stated that the acquisition indicates the first time a single firm in the cryptocurrency spectrum holds a broker-dealer, qualified custodian and transfer agent licenses.

Qualified curators could store securities on behalf of clients, which includes institutions, also broker-dealer could trade these securities for clients or for themselves. The transfer agents act as mediators that further help record transactions, among other duties.

As stated by Belshe, the company carries out nearly $15 billion in transactions every month, which also includes international clients.

An exact roadmap has not been created, the firm would add products and services of Harbor under the acquisition.

The sale marks a defining point for Harbor, which was initially set out to help other companies in issuing security tokens before focusing on enabling the tokenization of current securities. The firm created Ethereum tokens, back in 2019, constituting shares of four real estate funds worth $100 million.

Through not specified, BitGo also plans on extending the number of assets it supports, basically with security tokens.

Source credit: https://www.coindesk.com/bitgo-acquires-harbor-in-surprise-expansion-beyond-crypto-custody