Bitgo has opened a new chapter in Brazil. The U.S.-based crypto custody firm now plans to grow its presence in Latin America. Its new local office will focus on working with banks stepping into the digital asset space. The company already serves more than 25 clients in Brazil.
Now, it aims to do more. Bitgo will look to add financial institutions that need safe onshore crypto services. The step comes when mainstream players’ interest in digital assets continues to rise. Crypto regulations of Brazil are yet to emerge.
That has created space for companies like Bitgo to offer customized solutions. Bitgo will accept payments in Brazilian reais and render country-based invoices. That will avoid the clients having cross-border headaches. Bitgo will not directly compete with the banks.
Bitgo blends crypto tools with compliance
Instead, it wants to collaborate. It wants to offer tools and coverage for the businesses that want to build or expand crypto custody offerings. That includes insurance for in-house facilities handled by the banks themselves. That insurance component may just be the deciding factor on Bitgo’s offer.
It gives the banks extra confidence as they enter new territories. Bitgo attempts to meet regulatory needs while helping banks to manage risks at the same time. Bitgo now operates its custodial activities inside the U.S., Germany, Switzerland, and other global hubs.
This worldwide footprint proves its ability to navigate compliance and introduce safe products. Bitgo’s approach is characteristic of the overall direction. Crypto businesses today are more ready to tailor their products for the mainstream establishments. They adapt instead of resisting. They support instead of competing.
Bitgo expands reach beyond Traditional Finance
Not only will it deal with banks, but Bitgo will also service crypto-first businesses. That includes exchanges as well as staking providers. That broad remit is the model the industry predicts for legacy finance as much as new entrants. Timing is everything.
The Israel-based rival Fireblocks is active in Brazil too and recently filed to go public. This might very well be proactive now to strengthen its position, as it does not want to fall behind the rising tide.
Through grassroots establishment, Bitgo hopes to build trust and add value amidst complexity. Its long-term sustainability may depend on the possibility of matching the world standards with grassroots needs.
