Digital assets custody provider BitGo has unveiled a new solution designed to transform the management of token custody, distribution, and liquidation. According to BitGo, the Token Management platform offers an automated process that protocols and organizations can leverage to streamline their digital assets. This solution already benefits top protocols such as Worldcoin, Sui, and LayerZero.

Instead of using a fragmented system for stakeholders, projects can utilize this end-to-end solution for various aspects such as token vesting, liquidity management, token unlocks, and on-chain activities like staking. BitGo emphasizes that its solution allows projects to benefit from a compliant, insured platform that brings its qualified custodian standards to the fragmented market.

The launch of this one-stop crypto asset management platform comes shortly after digital asset exchange-traded funds issuer 21Shares chose BitGo as a custodian for its U.S. Spot ETFs. Specifically, BitGo will serve as the custodian for 21Shares ARK Bitcoin ETF and Core Ethereum ETF. Both ARKB and CETH launched in 2024 following the U.S. Securities and Exchange Commission’s approval of spot Bitcoin ETFs for trading in January and spot Ethereum ETFs in July.

This announcement added to BitGo’s presence in the crypto ETFs market, where the company already provides custody services for Hashdex and Valkyrie crypto ETFs.

WBTC and Competing Tokens

BitGo is also the custodian of Wrapped Bitcoin (WBTC), the Bitcoin-pegged token that enables BTC holders to participate in decentralized finance (DeFi). Recently, WBTC has attracted some negative attention.

This follows BitGo’s announcement that it would be diversifying WBTC custody in partnership with BIT Global, a Hong Kong-based firm linked to Tron founder Justin Sun. Sky, formerly MakerDAO, considered dropping WBTC amid this controversy, while Coinbase teased its own product before launching cbBTC. Interestingly, 21Shares also announced its own wrapped Bitcoin dubbed 21BTC.

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