💰 BitGo’s Potential Purchase: Prime Trust

⚡️ Brox is Back: Tokenized Bitcoin, Natural Gas, and Energy

Presented By:

Gooood morning, Rainmakers! ☀️

As always, we have two captivating topics for you to dive into:

1️⃣ 💰 BitGo’s Potential Purchase: Prime Trust

2️⃣ ⚡️ Brox is Back: Tokenized Bitcoin, Natural Gas, and Energy

Without further ado, it's time to…

Get Liquid 💧

A MESSAGE FROM PROVENANCE AND STA

Provenance Blockchain is a public-permissioned blockchain developed specifically with financial services in mind. The layer 1 blockchain touts over $12 billion in transactions across lending, investment funds, banking & payments, and other services per Provenance Blockchain Foundation. The direct ecosystem includes over 50 major financial institutions and almost 10,000 open wallets, with 700+ of those being institutional and qualified investors

Want to learn more? Sign up for their spotlight webinar on the STA Success Network!

Can’t wait? Check out their latest updates on the all new State of Security Tokens 2023 - Q1 Extended report on page 33! From Hamilton Lane to NovaWulf to USDF, there’s plenty that they’re doing from multiple angles.

💰 BitGo’s Potential Purchase: Prime Trust

Rumor has it: BitGo has submitted a bid and intent to acquire Prime Trust and its active operations.

Okay okay let me brew up my morning coffee real quick… ☕️

So according to CoinDesk “Prime Trust had been the subject of some speculation with people online suggesting the firm was facing bankruptcy.”

Enter BitGo and their bid. Should this pass, BitGo will now be in possession of another already-scarce qualified custodian entity within the digital assets space, eliminating some of the competition while acquiring their customers and other services.

Just a sec, for our new Rainmakers and as a refresher: what’s a qualified custodian?

Let’s get liquid 💧 

The TLDR basically says that a qualified custodian is a financial institution that meets certain requirements to custody assets and now even digital assets.

Qualified custodians are usually

- Banks (Like Anchorage with its bank charter)

- Special Purpose Broker Dealers (Like Prometheum and its latest announcement)

- Trust Companies (Like NYDIG)

and other special circumstances. For more on qualified custody, watch the main topic of Security Token Show episode 150 (23:47).

BitGo Trust Company is already a qualified custodian regulated by South Dakota Department of Banking (SDDoB) State Chartered Trust and is also registered as an MSB with FinCEN.

Remember how last month I told you all about how BitGo started working with INX on an institutional wallet management solution? Looks like they’re about to add even more to their suite of services!

  • Prime Trust’s Nevada Trust Company will join BitGo’s existing global network of regulated trust companies in South Dakota, New York, Germany, and Switzerland.

  • Prime Trust’s fintech API infrastructure and Prime Trust exchange network to reinforce BitGo Wallet Services (BWS) and BitGo’s Go Network — custody, liquidity, settlement, and compliance capabilities to map over 1:1.

  • BitGo to gain Prime Trust’s world-class network of banking partners and payment rails, crypto IRA, and additional wealth management offerings.

This puts BitGo in a “Prime” position to take a bigger marketshare in the custody space, especially for digital assets.

What are incumbents doing? Will they keep up? Let’s see if this acquisition actually happens first… stay tuned!

⚡️ Brox is Back: Tokenized Bitcoin, Natural Gas, and Energy

Brox Equity, a private company registered in Alberta, Canada, is combining traditional energy and the emerging crypto experience as a way to contribute to Canada’s economic recovery for the energy industry.

The company is raising up to $20 million through an innovative exempt digital security offering which will provide investors with diversified exposure to bitcoin, natural gas and electricity.

Quick Plug

A while back I wrote an article on Why Wealth Managers Should Consider Tokenized Assets and part of it included exposure to bitcoin in a compliant manner.

The Brox Token may be another great example of an asset wealth managers may want to consider for clients looking for bitcoin exposure without owning it directly.

Some notable comps I mentioned there were the BMN1 and HAG tokens.

This offering is part of the Brox strategy of purchasing natural gas assets to generate low-cost, environmentally efficient electricity for its proprietary bitcoin mining farms. Brox uses 50% of the power capacity that is generated at its sites to mine bitcoin on its own account and offers the remaining 50% to independent or third-party bitcoin mining companies.

Brox has a strategic relationship with PermianChain Technologies, the developer of a proprietary blockchain platform that brings together energy companies with crypto-asset miners to transform the way that energy is funded, produced, bought and sold. The Brox digital security, known as the Brox Token, is expected to be hosted on the PermianChain platform.

💦 What else is Drippin’

The wait is over: The Security Token Advisors State of Security Tokens 2023 - Q1 Extended report is brought to you by Provenance Blockchain Foundation!

Our Head of Research and Institutional, Peter Gaffney, dives deep with updates from across the industry, from issuers to platforms to protocols. This piece will detail the macro trends taking shape within the tokenization space as a function of service providers like transfer agents, broker-dealers, alternative trading systems, custodians, and third-parties, as well as issuers, blockchain foundations, asset managers, investment banks, and activity that Security Token Advisors sees on its advisory side

Take a read for analysis on common themes emerging for both primary and secondary markets! 👇

This is not financial or investment advice.

Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.