ERC20 Tokens are quickly gaining popularity on a global scale and it is now imperative that service providers devise novel ways to securely integrate support for such tokens.
BitGo is doing exactly that, with the platform now providing support for 57 Ethereum tokens as part of its ongoing custody service expansion.
BitGo Keeps Growing
In the world of cryptocurrency, secure wallet and custody solutions are hard to come by and most services available in this regard share one specific trait, that is they often rely on BitGo’s services. With its initial focus on Bitcoin, the company quickly became of great interest to cryptocurrency firms and custody providers since most consumers often rely on centralized entities to keep their funds safe and secure.
Over the years, BitGo has slowly expanded its services by shifting its focus to currencies other than Bitcoin. Although the world’s leading cryptocurrency is still the company’s bread and butter, there is a growing demand for custody services pertaining to other altcoins– especially when it comes to ERC20 tokens.
What Exactly is BitGo Panning on Doing?
BitGo is expanding its custody services on a large scale. The first upgrade comes in the form of support for 57 additional Ethereum tokens. As has been the case before, BitGo will specialize in cold storage solutions as well as safeguarding private keys associated with specific wallet addresses.
This news comes at an interesting time for exchanges looking to offer custody services. Coinbase has made it clear they plan to increase their offerings in this regard. Even so, such exchanges rely on third parties to manage user assets. With the ongoing evolution of the cryptocurrency industry, enabling support for ERC20 tokens seems like a logical decision at this time.
Final Thoughts
It is evident ERC20 tokens are growing in popularity among cryptocurrency enthusiasts. Having BitGo focus its attention on providing custody services for such tokens is an interesting turn of events. Although 90% of these tokens will fail or disappear completely, there are still hundreds of tokens which will succeed in the long run.
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