BitGo, a California-based blockchain security firm offering institutional grade custodial services for a variety of cryptocurrencies, is now supporting Zcash, as announced by the firm on July 25, 2018.
Security Meets Privacy
Created in 2013 by Mike Belshe and Ben Davenport, BitGo claims to be the world’s largest processor of on-chain bitcoin transactions, handling a massive 15 percent of all transactions involving the world’s flagship cryptocurrency, Bitcoin, while also generating an impressive $15 billion monthly from altcoin transactions.
According to the BitGo team, the pent-up demand for the addition of privacy-centered Zcash has made them start supporting the altcoin. As stated in its Medium blog post, BitGo will now handle Zcash deposits from both shielded and unshielded addresses, though all withdrawals can only be sent to unshielded addresses. With this latest development, BitGo now joins a growing list of Zcash compliant firms, including Circle, Gemini, and Coinbase.
“Zcash is a compelling digital currency that many hedge funds, exchanges, and customers have been asking for because of its emphasis on privacy, said BitGo CTO, Ben Chan, adding “We are glad to deliver a secure multi-signature implementation to store Zcash today.”
Crypto Heists Fueling Demand for Custodial Services
It’s becoming increasingly harder for big whale cryptocurrency hodlers and institutional investors to store their digital assets, as hackers are getting more sophisticated. This challenge has led to increased demand for the services of firms like BitGo.
Back in January, reports emerged that BitGo had entered into an agreement to acquire Kingdom Trust, a South Dakota-based fully chartered traditional financial asset custodian with $12 billion in assets under custody. At the time, CEO of BitGo, Mike Belshe, said, “…BitGo has established itself as the digital security leader, and Kingdom Trust has served as a 40 Act qualified custodian for almost a decade and has developed the expertise required by institutional investors necessary for compliance with the Act.”
On May 16, 2018, BTCManager reported that BitGo had launched a new service that would provide qualified custody of digital assets, institutional custody, and self-managed custody, specifically for institutional investors.
Buoyed by its strengthened organizational structure, BitGo added support for 57 ERC-20 tokens earlier in July.
Zcash to Moon?
Launched in 2016 by founder and CEO, Zooko Wilcox, the privacy-centered altcoin is built using Bitcoin Core’s codebase and its primary objective is to improve anonymity and privacy for users. Authorities have often criticized Zcash for being an excellent tool for bad actors due to its super anonymous nature.
With a total supply of 21 million, just like crypto king, Bitcoin, Zcash is currently ranked 21 on the cryptos table and has a market capitalization of $1.01 billion as seen on CoinMarketCap.
Whether the BitGo support will send the price of Zcash to the Moon remains to be seen.