BitGo Launches New Platform for Managing Web3 Tokens

BitGo, a leading U.S. cryptocurrency custodian, has introduced a new platform for managing and safeguarding native tokens used in Web3 protocols.

Announced on September 16, this regulated service is designed to help crypto-based organizations handle token distribution for investors, employees, and other stakeholders more efficiently.

The platform is aimed at addressing the complexities and security gaps that arise when Web3 protocols attempt to manage tokens through multiple unconnected systems, including non-custody wallets and smart contracts.

BitGo’s solution offers comprehensive management, including token vesting, distribution, staking, liquidity management, and tax reporting.

While self-custody avoids reliance on centralized entities, it can lead to risks such as cybersecurity threats and internal fraud.

Recent incidents, like the $6 million hack of DeFi protocol Delta Prime and the disappearance of BaseBros Fi with user funds, highlight these risks. BitGo’s new platform, insured up to $250 million, aims to mitigate these issues by providing robust security and compliance features.