by Joseph Young
Leading security platform and key management solutions provider BitGo has tripled its transaction volume, and is now handling more than US$1 billion worth of bitcoin payments per month.
Since mid 2015, BitGo has continued to partner with leading bitcoin platforms and startups in the industry, including Bitfinex and Kraken to integrate their robust security management systems, enterprise-level blockchain solutions and multi-sig wallet technologies.
As pioneers of multi-signature wallet platform and bitcoin security management systems, BitGo has been consistently developing their unique software to protect user funds and accounts of its clients. Since its launch in 2013, BitGo’s popular wallet platforms and API products have not experienced a single data breach, preventing the theft of bitcoins in various wallet platforms and bitcoin exchanges.
“Security is never a finished feature, so we’re continually raising the bar. As we reach this billion dollar milestone, we’re happy know so many customers are seeing the value of our solution,.” said BitGo CEO and co-founder Mike Belshe.
On September 23, BitGo director of marketing Regina Scolaro announced that its BitGo security platform and Enterprise bitcoin-focused products transacted US$1 billion worth of bitcoin payments in a single quarter. A few months prior to this announcement, BitGo secured partnerships with bitcoin debit card issuer E-Coin, leading blockchain data provider TradeBlock and global bitcoin exchange Kraken.
“Kraken serves a vital role in the digital asset ecosystem by delivering the deepest liquidity in the BTC-EUR market and many alternative cryptocurrencies. We look forward to their continued expansion and the innovation that their depth of experience brings to the table. Our team is passionate about preserving the safety and security of digital assets, and we are thrilled to be working with such esteemed veterans of Bitcoin,” said BitGo director of strategic initiatives Jonathan Silverman.
By integrating their technologies and API onto a popular bitcoin exchange platform like Kraken which offers the highest liquidity in the European market and holds a significant share of the bitcoin-to-europe conversions, BitGo experienced a spike in the number of transactions they handle.
The BitGo team explains that the use of the multi-signature technology or P2SH has generally increased since early 2015, with more than 10% of all bitcoins protected by multi-signature enabled wallets globally. Because of the successful hacking attacks launched against prominent bitcoin platforms like Bitfinex, a growing number of startups and bitcoin firms have begun to implement the multi-signature technology onto their wallet platforms, with security solutions provider like BitGo.
In May 2015, Hong Kong-based bitcoin exchange Bitfinex announced in a statement that bitcoins in its hot wallet, which account for at least 0.5% of the company’s bitcoin deposits were compromised in a suspected hacking attack.
“We believe that our hot wallet keys might have been compromised and ask that all of our customer cease depositing cryptocurrency to old deposits addresses. Although this incident is unfortunate, its scale is small and will be fully absorbed by the company,” said the Bitfinex team.
Immediately after reimbursing user funds, Bitfinex partnered with BitGo on June 3, 2015, to offer complete segregation of user bitcoins. The Bitfinex team works with BitGo to implement the multi-signature technology for each customer, allowing users to verify and authorize funds on the blockchain network for complete transparency. After collaborating with BitGo for a few months, the two startups unveiled a Bitcoin settlement and security architecture which provides an unprecedented level of security and transparency to their users.
“We’ve been working with Bitfinex for several months and are impressed by their dedication to security for their users,” said BitGo CEO Mike Belshe. “The industry has been clamoring for exchanges to adopt the multi-sig model, and we’re proud that Bitfinex selected BitGo’s platform to do it. This new level of transparency and security makes breaches such as those of Mt. Gox impossible.”
The long-term partnership with Bitfinex substantially increased the transaction volumes of BitGo by the end of the 3rd quarter of 2015, allowing the firm to reach a milestone of processing US$1 billion worth of bitcoin payments in one single quarter.
Throughout 2016, BitGo expects to see a significant rise in volumes, especially now that the company has secured partnerships with industry leaders and popular wallet platforms.