BitGo Highlights Hybrid Crypto Custody Model Following SEC Bulletin

BitGo CEO Mike Belshe has positioned the company as a unique leader in institutional crypto custody following the US Securities and Exchange Commission’s recent investor bulletin on digital asset custody. The SEC guidance, released on December 12, 2025, outlined two primary custody models for crypto assets: self-custody, where investors control their private keys, and third-party custody, where assets are held by a qualified custodian. According to Belshe, BitGo is the only provider capable of supporting all custody options described by the SEC within a single, integrated platform.

The announcement comes shortly after BitGo received conditional regulatory approval to operate as a federally chartered national trust bank, significantly expanding its institutional crypto services. In a public statement shared on X, Belshe explained that BitGo enables institutions to combine self-custody and third-party custody into a hybrid crypto custody strategy, allowing firms to tailor risk management and operational flexibility without compromising security or compliance.

Under BitGo’s model, institutions can store approximately 90% of their digital assets in BitGo Trust’s cold storage, which is designed to meet regulatory standards, includes insurance coverage, and undergoes regular SOC 1 Type 2 and SOC 2 Type 2 audits. The remaining assets can be held in self-custody hot wallets, enabling faster transactions and day-to-day operational use. This structure reduces single points of failure and avoids the risks commonly associated with centralized exchanges, such as account freezes during insolvency events.

BitGo Bank & Trust, NA supports more than 1,400 cryptocurrencies through segregated accounts and maintains a $250 million insurance policy backed by Lloyd’s of London syndicates. The company emphasizes that it does not rehypothecate, lend, or commingle client assets, maintaining strict 1:1 custody at all times. For self-custody, BitGo offers advanced security through 2-of-3 multisignature and MPC wallet configurations, allowing clients to retain control of their keys while benefiting from institutional-grade policy controls.

By aligning closely with the SEC’s recommended questions around crypto custody, BitGo positions its hybrid approach as a new benchmark for institutional investors seeking secure, compliant, and flexible digital asset management.