by Coinstrooper Crypto Articles
Quick Take
  • It comes only days after BitGo secured regulatory approval to operate as a bank, effectively expanding its institutional services.
  • “BitGo stands alone as the only provider delivering an institutional-grade platform for every option described by the SEC,” Belshe wrote.
  • “Our clients no longer have to choose between security and control—they can have both.”
  • The SEC bulletin, released on December 12, 2025, outlined the basics of crypto custody for retail investors, defining two primary models:

What Happened

In response to the US Securities and Exchange Commission’s recent investor bulletin on crypto custody, BitGo CEO Mike Belshe has positioned his firm as the only provider offering all the custody options described by the SEC.

In a post on X (Twitter), Belshe emphasized that the BitGo exchange enables institutions to combine self-custody and third-party custody into a single hybrid strategy, creating custom risk profiles that no other provider can replicate.

The SEC bulletin, released on December 12, 2025, outlined the basics of crypto custody for retail investors, defining two primary models:

Self-custody, where investors hold their private keys, and

BitGo also addresses the seven questions the SEC recommends investors ask when selecting a custodian. These include:

Market Context

It comes only days after BitGo secured regulatory approval to operate as a bank, effectively expanding its institutional services.

BitGo Claims It Can Do What No Other Crypto Custodian Can

Why It Matters

This hybrid approach mitigates single points of failure. If self-custody keys are lost, assets in the trust remain safe, while traditional exchanges would risk freezing all funds in the event of insolvency.

Details

“BitGo stands alone as the only provider delivering an institutional-grade platform for every option described by the SEC,” Belshe wrote. “Our clients no longer have to choose between security and control—they can have both.”

Third-party custody, where a qualified custodian manages assets.

While most providers require clients to pick one model, BitGo allows institutions to utilize both simultaneously.

Under BitGo’s framework, 90% of client assets can be stored in BitGo Trust cold storage, meeting standards of regulatory compliance, insurance, and security.

The remaining 10% can reside in self-custody hot wallets, enabling real-time transactions and operational flexibility.

BitGo Bank & Trust, NA, a federally chartered national bank, underpins the platform’s third-party custody solution. Subject to regular SOC 1 Type 2 and SOC 2 Type 2 audits, the bank supports more than 1,400 coins and tokens under segregated accounts, backed by a $250 million insurance policy from Lloyd’s of London syndicates.

According to Belshe, BitGo does not rehypothecate, lend, or commingle client assets, maintaining strict 1:1 custody standards.

For self-custody, BitGo provides wallets with 2-of-3 Multi-Sig or MPC threshold security. Clients retain two keys while BitGo holds one for co-signing, enabling policy controls without compromising autonomy.

Together with the third-party trust, these options are consolidated on a single dashboard, providing clients with full transparency, flexibility, and control across various custody models.

BitGo Aligns with SEC Questions While Offering Full Custody Flexibility

Background verification

Asset coverage

Storage protocols

Use of assets

Privacy protections, and

Fee structures.