TradFi will remain ‘mostly out’ of Crypto, says BitGo CEO

• According to Belshe, regulators outside the U.S., in contrast to American regulators, give clearer regulatory channels.
• Belshe stated that other acquisitions are on the way, which the firm was yet to reveal.

BitGo CEO Mike Belshe believes that traditional financial (TradFi) firms will remain mostly outside of crypto space.

Belshe said in a CNBC Crypto World show on 27 June that,

“I think the net effect is that, here in the U.S., the traditional financial firms are going to remain mostly out … I know we’ve got Blackrock that’s coming in with an ETF, there’s going to be a few exceptions like that, which is great.”

According to Belshe, U.S. regulators have taken a strict stance towards the crypto industry. It has compelled institutions and institutional investors to pay attention to rules. He believes that by working together, crypto businesses and traditional financial institutions can build a better, more secure market.

Belshe also highlighted that key industry players opposed U.S. regulators, and that regulators outside the U.S. give clearer regulatory channels.

Belshe proposed that market downturns may increase demand for de-risked market platforms. This could open up opportunities. He indicated that crypto ventures can work along with traditional firms for this purpose. While the former can develop the necessary technology, the latter can successfully work with regulators.

Following ongoing regulatory challenges, BitGo CEO claimed that a significant U.S. Bitcoin market might emerge, and that it was not far away.

Acquisitions in the pipeline

The American-based crypto custodian platform abandoned the plan to acquire Prime Trust on 22 June amid rumours of the company’s insolvency. BitGo’s acquisition of Prime Trust was expected to give financial assistance to Prime Trust to deal with the ongoing bankruptcy challenges.

On the other hand, Belshe stated that other acquisitions are on the way. He predicted that consolidation will occur in the area during the next six months.

In a separate interview with CoinDesk TV, Belshe talked about upcoming acquisition deals. He noted that his firm was now more focused on growing its business rather than being acquired by a large competitor.

Mike Novogratz’s crypto merchant bank Galaxy Digital nearly acquired the California-based company. Galaxy Digital, however, cancelled the deal in August 2021. BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million, alleging a breach of agreement.