BitGo’s plans to acquire Prime Trust, a prominent custody company, unexpectedly came to fruition as BitGo recently announced on Twitter the cancellation of the claim. The initial announcement created excitement within the industry, as the merger of these two major custodians is expected to have a major impact on the industrial landscape.
In the initial announcement, BitGo emphasized its goals to provide business continuity, long-term stability and secure services to Prime Trust clients. Prime Trust, expressing its enthusiasm for the partnership, believes that the combined company will change the future of custody services. Jor Law, Prime Trust’s Interim CEO and President, said, “No other company has the breadth of product and service or depth of experience that this combined company will have.”
However, after many efforts and discussions, BitGo made the “difficult decision” to close the acquisition. Although BitGo did not give specific reasons for this change of course, the company emphasized its commitment to deliver trust in digital assets. The closing of the deal raises questions about the future trajectory of Prime Trust, as there were many rumors about the company’s liquidity before the acquisition announcement.
The original acquisition decision came amid developments in the custody landscape, with Bitcoin-only exchanges Strike and Swan both announcing their departure from custody services provided by Prime Trust. Strike moved to use its own custody service, while Swan moved to BitGo and Fortress Trust, founded by Scott Purcell, the former founder of Prime Trust.
While the closing of the acquisition has raised speculation about Prime Trust’s financial health, the recent announcement neither addresses nor confirms these rumours. The industry now eagerly awaits further details and clarifications from BitGo and Prime Trust regarding their future plans and strategies.