BitGo’s acquisition of Brassica opens doors to the private securities sector
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Crypto custody firm BitGo recently acquired a fintech called Brassica — a company that specializes in providing back-end infrastructure services for alternative investments and private securities. The details of the acquisitions were not revealed to the public, but the implications of the move could be quite significant.
BitGo’s new acquisition opens up major opportunities
According to recent reports, BitGo’s new move could be a major game-changer, as it could allow it to offer a single platform to service both blockchain-based assets and traditional private securities on a global level. As a result, BitGo could find itself in a perfect situation to start the tokenization of real-world assets.
The crypto company held a funding round in 2023, and at the time, it was valued at $1.75 billion. Now, it will get a technology stack that will include multi-asset custody, streamlined record-keeping, advanced capital formation, as well as transfer agent services.
BitGo’s CEO, Mike Belshe, commented on the move, saying that there is currently a dichotomy in the financial services industry. He pointed out that there is one side that deals with blockchain-based assets and cryptocurrencies, while the other is in charge of traditional securities.
Over a decade ago, in 2013, BitGo became the first digital asset company that is focused exclusively on serving institutional clients. Now, the acquisition will allow BitGo to become the first major financial services company capable of providing comprehensive infrastructure support for both traditional private securities and blockchain-based assets.
Along the way, it will also allow it to significantly expand its global presence. Brassica’s comprehensive infrastructure solutions for private securities will make sure of that, as the technology will provide greater accessibility in the industry, making traditional and digital investing more approachable and widespread.
Setting the stage for the future
Brassica’s founder and CEO, Youngro Lee also commented on the acquisition, stating that joining forces with BitGo is a major step toward Brassica’s ultimate vision of building the financial infrastructure of the future.
“Our strength lies in our ‘one stop shop’ approach of providing API-enabled infrastructure for the alternative assets industry. This sector is rapidly growing and bringing in new investors around the world. Our technology-focused development, combined with our deep domain expertise in securities and banking laws, uniquely position us in the market, especially for sophisticated clients dealing with the complexities of private securities and digital assets,” Lee explained.
As BitGo’s announcement itself said, this acquisition and combination of BitGo’s position with Brassica’s technology will set the stage for a new era in financial services — one that is digital, borderless, and inclusive.
