Goldman Sachs-supported Bitgo introduces a Crypto- service platform for businesses
Traditional Financial Institutions Embrace Crypto with Help from BitGo, Circle, and Coinbase
In the ever-evolving world of finance, traditional institutions are increasingly integrating digital asset trading, driven by clearer regulations and growing institutional demand. Companies like BitGo, Coinbase, and Circle are playing crucial roles in this integration, offering secure custody services, fiat-to-crypto conversion infrastructure, and the development of regulated stablecoins.
Institutional Adoption Acceleration
Regulatory clarifications, such as the U.S. OCC's affirmation that banks can custody digital assets and the EU's MiCA framework, have boosted institutional confidence and participation in crypto markets. Traditional banks like BNY Mellon offer crypto custody, but crypto-native firms are capturing market share due to specialization.
Crypto Custody for Institutions
BitGo, a major crypto custodian, has seen rapid growth in assets under custody, from $60B to $100B in H1 2025. Serving banks, exchanges, and investment firms, BitGo's robust security and regulatory compliance make it a trusted custodian. The company is pursuing a US IPO and expanding globally under MiCA regulation, positioning itself as a bridge between traditional finance and crypto.
Stablecoin and Fiat Integration Infrastructure
Circle, which issues the USDC stablecoin, partners with traditional financial and payment firms to seamlessly bridge fiat and crypto. Circle collaborates with Coinbase for fiat-to-USDC conversion and with global partners like Binance, Mercado Libre, Nubank, SBI Holdings, and Grab to expand USDC adoption and interoperability across markets. Circle’s network enhances liquidity, settlement, and token usage in traditional finance environments.
Bank Charter Pursuits
Coinbase, Circle, BitGo, and others are applying for bank licenses to operate as regulated banks, enabling them to provide full banking services alongside crypto offerings. This would further accelerate traditional-finance integration.
Diversified Crypto Services
Coinbase leads in crypto trading, custody (e.g., for Bitcoin ETFs), and Layer 2 blockchain development, contributing to institutional infrastructure around digital assets.
BitGo's Crypto-as-a-Service (CaaS) Platform
Bitgo is launching a CaaS platform, designed to help financial institutions integrate digital asset trading. The platform is modular and turnkey, allowing institutions to tailor their platform's features to clients' specific needs, ensuring quick rollout and scalability. The platform includes regulatory compliance and insurance coverage, as well as Know Your Customer and anti-money laundering tools.
Industry Trends
Digital assets firms have adopted functions once reserved for financial services companies, and some have considered pursuing bank charters in the U.S. to offer loans and accept deposits. PayPal launched its PYUSD stablecoin, while Stripe has one in development, and Meta is considering one of its own. Blockchain technology, due to its efficiency and security, is being considered as a base for mainstream financial services, not just cryptocurrency. Tokenization of real-world assets like property deeds and stocks is a focus for financial institutions, as it can streamline manual and expensive processes.
In summary, these companies contribute by providing institutional-grade custody, regulatory compliance, and progressing towards becoming regulated banks for seamless integration. They are driving stablecoin adoption, enhancing liquidity, settlement, and token usage in traditional finance environments, and reducing the need for extensive in-house development and expensive setup for infrastructure. Together, they enable traditional financial institutions to enter digital asset markets with trusted infrastructure, regulatory alignment, and improved interoperability between fiat and crypto ecosystems.
The rapid growth in assets under custody by BitGo, a major crypto custodian, is indicative of its expanding role in helping traditional financial institutions integrate digital asset trading (finance, business). With a focus on robust security and regulatory compliance, BitGo is positioning itself as a bridge between traditional finance and crypto (technology).
Circle, a company prominent in the development of regulated stablecoins, partners with traditional financial and payment firms to seamlessly bridge fiat and crypto, enhancing liquidity and settlement in traditional finance environments (finance, technology). Its network makes USDC adoption and interoperability across markets possible, thereby driving crypto integration in the mainstream finance world (business).
