BitGo’s plans to acquire Prime Trust, a prominent custody firm, have taken an unexpected turn as BitGo Recently announced On Twitter cancel the acquisition. The initial announcement generated excitement within the industry, as the merger of these two major trustees was expected to have a significant impact on the industry landscape.
In the initial announcement, BitGo highlighted its intentions to provide business continuity, long-term stability, and secure services to Prime Trust customers. The Prime Trust was excited about the partnership, and saw that the combined company would revolutionize the future of custody services. Jor Low, interim CEO and President of Prime Trust stated, “No other company will have as wide a range of products and services or depth of expertise as this combined company.”
However, after much effort and discussion, BitGo made the “difficult decision” to finalize the acquisition. Although, of course, BitGo did not provide specific reasons for this change, the company affirmed its commitment to providing trust in digital assets. The termination of the deal raises questions about the future path of Prime Trust, as there were many rumors about the company’s liquidity prior to the acquisition announcement.
The original acquisition decision came amid developments in the custodial landscape, with bitcoin-only exchanges Strike and Swan both announcing their departures from Prime Trust’s custodial services. Strike switched to using its own custodial services, while Swan moved to BitGo and the Fortress Trust, which was founded by Scott Purcell, the former founder of the Prime Trust.
While the closing of the acquisition raises speculation about Prime Trust’s financial health, the latest announcement has not addressed or confirmed these rumors. The industry will now eagerly await further details and clarifications from both BitGo and Prime Trust regarding their future plans and strategies.