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Palo Alto’s BitGo has become the first U.S. approved NFT digital asset custody solution provider, offering services to allow its more than 700 institutional clients to acquire and hold NFT assets.
According to a company press release, the company’s custody solution can be paired with hot wallets for the NFT industry, providing marketplaces, retail platforms, and NFT portfolio holders with the guardrails needed to participate in the NFT ecosystem.
Rather than using ad hoc solutions, BitGo clients will be able to use BitGo’s platform to interact with NFT marketplaces and acquire desired assets.
The solution opens the door to institutional investing via major NFT decentralized marketplaces including OpenSea, Looks Rare, ArtBlocks, Gem, Rarible, and others.
“The NFT space has seen massive growth in the past year along with an increasing set of use cases and applications. More builders are solving real world problems and more investors are participating. What’s been missing is the institutional infrastructure to protect these digital assets and their owners,” said Mike Belshe, CEO of BitGo.”
The 700 institutional customers of BitGo are able to safely receive, keep, and transmit NFTs thanks to the company’s multi-signature security, 24/7/365 withdrawal access, and support. Along with Crypto Punks, it supports the ERC-721 and ERC-1155 protocols.
“Since 2013, BitGo has been dedicated to serving institutional investors and enterprises looking to safely hold digital assets. We were instrumental in building out the guardrails that helped the industry get to this point and now it’s time we do the same for NFTs.”
How much is the NFT sector expected to grow in the next few years?
NYC-based Jeffries Investment Bank predicted this past January that the NFT market cap could grow from 35 billion in 2022 to over 80 billion by 2025.
A report by the bank noted that metaverse technologies and the digital “building blocks” of NFTs would work synergistically in an emerging web3 landscape, offering companies ways to digitally market, create value and extend their brands, among other things.
Meanwhile, Trends In Cryptos has pointed out that NFTs represent far more even than those uses. NFTs are a new technological paradigm of owning, fractionalizing ownership, and automating business and financial processes, transfers and payments related to ownership, while dispensing with middle players. It promises to create efficiencies and possibilities that will be a major component of the web3 revolution.
For more on that, see:
- “A TOKENIZED PLANET” (15 Mar 2022)
- “NFTS: MUCH MORE THAN DIGITAL ART” (15 Feb 2022)
- “ONE OF A KIND: THE WORLD OF NFTs” (10 Aug 2021)