The world of global finance is on the brink of a revolutionary change driven by the widespread acceptance of digital assets such as Bitcoin. As more businesses transition into the digital realm and assets shift onto blockchain networks, there is a significant challenge for stakeholders to guarantee the security of these assets.
As the array of digital assets in circulation continues to grow, establishing a secure institutional infrastructure becomes an increasingly formidable undertaking. Consequently, the demand for a reliable, secure and efficient wallet infrastructure continues to rise. This demand sparks an intense competition between legacy custody solutions and emerging digital asset custody platforms whose role extends beyond just safeguarding funds and private keys.
A major reckoning has been introduced by innovative custody providers, like Liminal, who are integrating automation, firewall, and staking, changing the game of digital custody by adapting to market requirements and transforming the functionality of custodians.
In this article, we explore the top 5 alternatives to BitGo, which serve a range of custody requirements.
5 Top Alternatives To BitGo’s Custody Solution
Since BitGo could be an expensive solution for small-scale crypto firms and developers, the need for more cost-efficient custody solutions is paramount. Plus, BitGo processes all the transactions using a single server, making it more susceptible to hacking. Here are some better alternatives to BitGo:
Liminal Custody
Liminal custody stands out as a wallet-as-a-service provider, offering a highly secure, scalable, and customizable solution. Employing a zero-key leakage tolerance approach, Liminal assists businesses in mitigating risks associated with digital asset transfers, including cyber-attacks, internal collusion, and human error. With the backing of industry leaders such as CoinDCX and Elevation and serving leading exchanges like Zebpay and WaizX, Liminal has been earning the trust of prominent Web3 institutions and regulatory agencies to become the go-to custody solution partner for regulatory bodies and federal agencies throughout India and various parts of Asia.
Operating in more than 12 countries and continually expanding through strategic partnerships, Liminal has facilitated transactions exceeding $6 billion, resulting in significant time savings for businesses—over 100 manual hours have been spared through its efficient processes.
Why does Liminal stand out as a custody solution?
Here are a few key reasons Liminal is a reliable alternative to BitGo:
Leading Innovation and Excellence: Liminal brings innovation into the realm of digital asset custody and wallet management processes, from automation to cost optimization and policy-based workflows to compliance checks.
Industry Standard Licensed and Compliant: Liminal has the most updated integrations and exclusive licenses within its existing infrastructure. It continues to apply for new policies to comply with.
Procuring Best-In-Class Security Protocols: Liminal eliminates major vulnerabilities in institutional custody with its key management system, firewall configuration layer, updated information, and digital asset security certification integrations.
An Interoperable Ecosystem: Liminal incorporates multi-chain support into its wallets to meet interoperability requirements to provide comprehensive asset custody coverage.
Build By Experienced Wallet Engineers: Liminal’s core team is comprised of experienced wallet, security, and compliance engineers with a proven track record of leading wallet operations at major crypto exchanges.
A Mobile First Wallet Approach: The Liminal Vaults app prioritizes mobile support, enabling users to easily manage and create MPC wallets, initiate sign transactions, create policies, and track transactions on the go.
Strategic Government Collaborations: In addition to providing custody services to crypto startups, Liminal actively engages in partnerships with regulatory bodies and central agencies, including India’s FBI, to secure digital assets seized during investigations. The trust placed in Liminal by leading government entities and regulatory bodies makes it an ideal choice for infrastructure-as-a-service businesses in the Web3 domain.
Nevertheless, there are a few hurdles that Liminal needs to overcome. Operating for only three years, Liminal may require additional time to establish itself as a robust enterprise-level asset custody solution. Furthermore, compared to providers serving large enterprises with more flexible pricing, Liminal currently faces some limitations in this regard.
Atato Custody
Atato addresses the key challenges that legacy custody solutions face – poor UX and lack of customization. Atato is specifically designed to assist institutions and crypto-native businesses in securely managing ERC-20 tokens. This platform enables institutions to effortlessly integrate any EVM chain with a simple click, utilizing multi-party computation technology to enhance security and reduce network fees by up to 90%. Primarily catering to institutions and businesses in Asia and Europe, Atato distinguishes itself through its cost-effective solutions.
Additionally, Atato offers a WalletConnect feature, enabling institutions to access diverse functionalities by connecting to decentralized applications (dApps) across various blockchains.
Why Atato Stands Out As A Custody Solution?
Flexible Pricing Structure: Atato provides tiered or per-wallet pricing without any fees based on assets under custody (AUC).
Advanced Security Measures: Leveraging cutting-edge Multi-Party Computation (MPC) technology, Atato fortifies its platform against hacks or breaches.
Highly Customizable: Atato supports “Bring Your Own Chain” (BYOC) and “Bring Your Own Tokens” (BYOT) features, facilitating seamless operations across different blockchains.
Organized Workspaces: The platform offers workspace functionality, allowing users to organize wallets based on location, specific needs, and rule sets.
However, there’s still room for improvement when it comes to customer support.
Hex Trust
Next on the list is Hex Trust, a fully licensed digital asset custody solution provider. Hex Trust’s innovative digital asset protection solutions are built to help both leading institutions and emerging crypto businesses. It is designed to complement scalability and growth. With features like sub-accounts and SOC-2-compliant governance framework for asset protection, Hex Trust offers the highest level of security and scalability for high transaction volumes.
The platform also offers insurance to keep funds safe against cyber crimes or breaches. It supports 15+ different blockchain ecosystems (chains), offering a bank-grade digital asset protection solution. Interoperability and flexibility are at the core of Hex Trust’s foundation. Also, it offers integration with institutional-grade wallet extensions such as MetaMask Institutional to access 17,000+ dApps without compromising on security.
Why HexTrust Stands Out As A Custody Solution?
Unparalleled Interoperability: Hex Trust unlocks access to 17,000+ dApps without compromising on security and compliance, offering industry-grade interoperability.
Highly Convenient: Unlike most other solutions on the list. Hext Trust has both Android and IOS apps, simplifying the transaction process more convenient than ever.
Configurable Transaction Policies: Users can set their own transaction policies at enterprise levels to beef up the security of their assets.
However, Hex Trust is primarily focusing on emerging economies like Asia to safeguard valuable digital assets.
Bakkt Custody
Bakkt offers industry-grade custody solutions across Asia, Europe, and Latin America. It is a NYDFS Qualified Custodian, helping traditional finance players transition into Web3. With its comprehensive compliance programs for KYC, AML, KYT, and SOC 1 Type II compliance, Bakkt is an ideal solution for new businesses seeking a reliable custody solution with security and regulatory compliance obligations.
However, it has been in operation for just 5 years. Meaning, it is better suited for emerging startups and TradFi businesses foraging into the Web3 domain.
Here’s What Makes Bakkt Unique
Trustworthy: Bakkt is an NYDFS-qualified custodian. This means reputable institutions put their trust in the secure custody of Bakkt adding to the trust of businesses and institutions on the platform.
Effective Treasury Management: Bakkt offers segregated wallets to prevent the mix-up of client assets and company assets, making treasury management simpler than ever.
24/7 Support: Recall how Atato lacks the required customer support. Bakkt seems to have an upper hand with its highly effective 24/7 support.
However, there’s negligible data to suggest it as an option for large-scale crypto enterprises due to limitations in operations.
Zodia Custody
Zodia is not just a reliable crypto custody solution that retains complete control over clients’ funds. Backed by leading global finance players like Standard Chartered and SBI Holdings, Zodia offers bank-grade custody for digital assets. It is one of the most connected custody platforms in the digital asset space.
It uses MPC technology to offer industry-grade security for digital assets. The key features of Zodia’s custody solution include biometric authentication and air-gapped key storage. The platform offers detailed audit logs to keep track of all the transactions and put human error out of the equation.
Here’s What Makes Zodia Custody Stand Out
Scalable: It supports multiple token standards, including ERC-20, ERC-1404, and ERC-3643, facilitating institutional-grade scalability.
Incentivization for Institutions: Besides securing digital assets, Zodia allows institutions to stake directly from their wallet in exchange for health rewards.
100% Self-Hosted: Institutions trust Zodia’s custody solution because offers 100% self-hosting, putting users in control of their funds and facilitating self-managed key recovery.
Now that we have understood the key benefits of each of these solutions, making a decision would be easier.
BitGo: The Gold Standard
When it comes to safeguarding digital assets at an institutional scale, BitGo has emerged as a global leader in the custody solution space. Its global coverage, institutional-grade security, insurance, and compliance solutions establish it as a leader in the digital asset space.
BitGo provides secure wallet infrastructure services to various entities, including crypto exchanges, retail platforms, crypto-native businesses, and developers. Offering a diverse range of wallet-as-a-service solutions, BitGo covers everything from hot wallets to self-managed cold wallets. In addition to safeguarding digital assets through custody services, BitGo offers solutions such as collateral management, aiding institutions in separating collateral from trading partners and exchanges.
It supports over 200 different cryptocurrencies and leverages multi-sig and key management features for enhanced security. The wallet strategically divides keys between itself and the customer, introducing an additional layer of protection to deter potential hackers from compromising its security.
Here are some key features of BitGo:
Custom Private Blockchains: BitGo creates personalized private blockchains tailored to meet specific organizational requirements, thereby restricting access to assets for enhanced security.
Multi-Sig Wallet: Employing a multi-sig wallet architecture, BitGo ensures that a single user cannot mismanage funds.
Accelerated Transactions: BitGo enables businesses to authorize non-confirmed transactions, enhancing transaction speed and facilitating instant settlements.
User-Friendly Interface: BitGo boasts an easily implementable interface, simplifying interactions for stakeholders without a development background.
However, BitGo does come with certain limitations. For instance, it provides limited support for non-custodial trading. Additionally, its pricing is comparatively higher than that of other platforms on the list. Given its elevated pricing, BitGo is better suited for large enterprises and may not be as suitable for crypto SMEs.
Here are some limitations of BitGo that need attention:
- It uses a single server for processing transactions, which may be prone to hacks and vulnerable to failures.
- The reviews regarding BitGo’s customer support are not too praiseworthy either.
- BitGo could be a tad too expensive for crypto SMEs and small-scale Web3 businesses due to its high pricing.
- Also, the UX could be a little challenging for new users.
Hence, all these new BitGo competitors are eating up the market, as it is no longer an ideal custody solution for small-scale firms looking for a cost-efficient solution or users who have just transitioned to Web3 from Web2.
How To Choose The Right Custody Solution
After conducting various comparisons, the fundamental question lingers: How does one choose the right crypto custodian? The diverse needs of businesses, influenced by factors such as operational geography, fund size, regulatory and security obligations, and customization requirements, necessitate careful consideration before making a decision.
Several key factors should be evaluated when selecting a crypto custody solution:
Solution Type: Different platforms offer various custody solutions, such as non-custodial wallets, self-custody, hot wallets, cold wallets, and more. Assessing security requirements and preferred custody types is crucial in the decision-making process.
Institutional Staking: Liquidity is the backbone of DeFi and there’s no reason for businesses to not contribute to it by staking their holdings for additional ROI. However, managing a diverse portfolio with millions of dollars could be a daunting task. It always helps if your custody solution offers institution-grade staking.
Whitelabel Solution: Businesses work on a hierarchical model and it always helps to have a customizable architecture and additional security in the form of multi-user approvals. Finding a wallet that offers a Whitelabel solution could be a big differentiator for businesses looking to gain a competitive edge in Web3.
Security Infrastructure: Given the evolving nature of security trends in the Web3 space, a thorough review of the security architecture is necessary to ensure alignment with the firm’s expectations.
Compliance: Compliance in the crypto industry varies from one country to another. Opting for a solution that aids businesses in adhering to local regulations is vital.
Pricing: Ultimately, budget constraints play a crucial role. Checking if the selected solution aligns with the budget is a wise initial step.
It’s important to note that there are no rigid rules for selecting a custody solution provider. Businesses must conduct thorough due diligence to stay abreast of trends and make well-informed decisions.
Wrapping Up
Ensuring the secure custody of digital assets is essential for institutions looking to embrace cryptocurrency and catalyze a substantial influx of funds into the digital asset market. In the face of continually evolving security risks, regulatory demands, and market dynamics, secure custody stands as a prerequisite for widespread institutional adoption. Resilient custody solutions not only inspire confidence but also adhere to regulatory standards, effectively mitigating the risks associated with potential asset loss.
The aforementioned comparison offers a comprehensive overview of the current landscape within the custody solution industry, detailing its various offerings. It’s crucial to acknowledge that there is no one-size-fits-all solution in this context. Innovative custody solutions are emerging to address the dynamic landscape of changing regulatory and security requirements. With numerous reputable platforms entering the arena, institutions now have the opportunity to enhance the security of their assets through thorough research and consideration.