Overview
Galaxy Digital, led by Mike Novogratz, is partnering with BitGo Trust to integrate its blockchain staking services, handling over $4 billion in staked assets, into BitGo’s regulated custody platform. This collaboration comes amid BitGo’s ongoing legal dispute with Galaxy, stemming from a $100 million lawsuit filed in early 2023.
The arrangement allows BitGo’s customers to stake their assets while utilizing them as collateral for loans and trading. Zane Glauber, the head of Galaxy’s Blockchain Infrastructure team, emphasizes the unique offerings this partnership provides.
Background
- Galaxy had previously planned to acquire BitGo but terminated the deal after legal issues arose.
- Both companies acknowledge significant potential in advancing digital asset adoption despite the legal hurdles.
“Galaxy and BitGo both see an incredible opportunity to further drive adoption of digital assets and remain committed to strategic collaboration despite ongoing legal proceedings, which are a separate matter.”
Staking refers to the process of locking up cryptocurrency to power blockchain operations in exchange for rewards. This partnership aims to leverage the enhanced products Galaxy can offer, particularly for assets held in custodial relationships, allowing for cash borrowing and collateralized trading strategies.
The ongoing developments in the U.S. regarding crypto regulations may soon pave the way for staking inclusion in exchange-traded funds (ETFs), which is a topic of significant interest for both investors and the companies involved.
