BitGo is processing more than 20 percent of bitcoin transactions, the company said at CoinDesk's Invest: NYC conference today.
The announcement by the crypto custodian and issuer of hot and cold storage wallets means that a sizable share of on-chain transactions pass through its services, a sign of consolidation, and power, in the crypto space.
It also raises questions about market collapse: If BitGo goes down, would those assets be at risk? But when asked that question directly, BitGo CEO Mike Belshe, on stage at "The Shape of Things to Come: Crypto Custody in a Proof-of-Stake World" panel, said there was nothing to fear.
“The big thing we do is try to remove single points of failure,” Belshe said. BitGo’s multi-signature key system secures assets, even if one layer gets breached – the clients hold the keys, he said.
Belshe credited BitGo’s growth to customers’ value of their multi-sig security.
In a statement, he said:
BitGo has invested recently in off-chain settlement systems, launching one aimed at institutional clients in May.
Mike Belshe image via CoinDesk archives