BitGo, a Palo Alto, California-based Blockchain security firm and wallet service, has added support for Blockchain Capital’s ERC-20 token. Venture capital firm Blockchain Capital’s BCAP token is a security token based on the Ethereum (ETH) Blockchain, launched in a USD10 million initial coin offering (ICO) in April 2017. As part of the announcement, the company said that BitGo users will now be able to hold their BCAP assets using BitGo Trust Company, a qualified and regulated custodian that provides compliant custody for security tokens.
Apart from this, BitGo has also launched its multi-signature wallet security. Chief Technology Officer at BitGo, Ben Chan said that qualified custodial services that are compliant with securities regulations are critical for users of the platform. He further added that security tokens are an increasingly important asset class for institutional investors. As the company noted, BCAP is tradable on secondary trading platforms allowing investors to benefit from the opportunity for liquidity in those assets. BCAP represents an indirect economic interest to the limited partnership interest in the tokenized investment fund and is the world’s first security token that was sold in an ICO. In January this year, regulated Alternative Trading System (ATS) SharesPost facilitated a secondary trade of BCAP tokens in a milestone proof-of-concept transaction.
In the development of security tokens, Nasdaq-powered digital trading platform DX.Exchange recently introduced its own security token trading and Security Token Offering (STOs) listings. In that effort, the platform purportedly enables investors to buy security tokens using both fiat and cryptocurrencies like Bitcoin, Ethereum, Tether (USDT) and Ripple (XRP). BitGo supports more than 100 Cryptocurrencies and tokens, and over USD2 billion in assets held in its wallets.