Harbor and BitGo Partner in Transforming Private Securities with Blockchain
Harbor and BitGo addressing the complexity, security and compliance roadblocks of crypto asset investing
SAN FRANCISCO – Oct. 31, 2018 — Harbor and BitGo, the market leader in institutional-grade cryptocurrency security, today announced a strategic partnership to integrate BitGo Business Wallets and BitGo Custody into the Harbor compliance platform for tokenizing traditional private securities, such as commercial real estate, investment funds, fine art, and more.
“Tokenized private securities are the next big wave in capital markets, but roadblocks of complexity, security and compliance must be addressed for mainstream investors,” said Josh Stein, CEO of Harbor. “Our partnership with BitGo is key to providing a great user experience on top of an industrial-grade platform that investors, issuers and regulators can trust. With BitGo’s expertise, we will help democratize access to premium private investments in a more liquid, digitized form that allows for value creation in ways that were impossible before. The transition from papered private securities to digitized forms using the blockchain will have a similar impact as the transition from snail mail to email had on written communication.”
“The Harbor platform will help change the way traditional assets like commercial real estate are securitized,” said Mike Belshe, CEO, BitGo, and advisor to Harbor. “BitGo and Harbor share a commitment to transforming capital markets by creating ways for more people and institutions to participate. We have worked closely to create a seamless experience for issuers and investors, from the provisioning of digital wallets to the custody of funds.”
Tokenization is the process of digitizing private securities that previously existed only on paper, using blockchain technology. The technology transition to digitized shares will enable new capabilities, but ownership rights remain the same as for traditional securities. For private securities, tokenization can bring efficiency, transparency and liquidity to a broad class of traditionally illiquid assets, where transactions, agreements, ownership transfers, and compliance are typically done manually.
Harbor’s all-in-one platform allows issuers and broker dealers to bring tokenized private securities to market. The platform streamlines investor onboarding (KYC/AML, accreditation, international tax rules), signing of documents, funding, and a myriad of other tasks, making it faster, easier and more cost-effective to syndicate investments more widely among larger groups of investors. The Harbor compliance protocol enforces the complex rules and regulations governing securities on issuance, and more importantly, on secondary transfers, wherever they occur. The Harbor solution helps maximize the potential for liquidity removing friction to trade and by ensuring automated compliance in transfers across multiple venues simultaneously.
Through the integration with BitGo, Harbor will provision BitGo Business Wallets for investors and BitGo Custody for issuers, and BitGo will handle the custody of cryptocurrency funds during the fundraising process.
“BitGo is a great partner for Harbor because we share a commitment to security and compliance that will help bring institutional investors to the crypto asset market,” said Sujay Jaladi, Chief Information Security Officer at Harbor.
BitGo provides institutional investors with security, compliance, and custodial solutions for blockchain-based currencies. In 2013, the company introduced the industry’s first multi-signature hot wallet. Today, BitGo is the world’s largest processor of on-chain Bitcoin transactions, processing 15% of all global Bitcoin transactions, and $15 billion per month across all cryptocurrencies. In 2018, the company introduced BitGo Custody and launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets.
Harbor is reengineering private securities with blockchain technology to help usher in a new wave of tokenized securities backed by real-world assets, such as real estate, company equity, investment funds, and fine art. The Harbor platform, powered by its compliance protocol and Regulated Token (R-Token) standard, is the first to ensure tokenized securities comply with existing securities laws on every trade, everywhere, every time, across the globe. Harbor has raised more than $40 million and is backed by leading investors, including Founders Fund, Andreessen Horowitz, Craft Ventures, Vy Capital, Fifth Wall, Valor Equity Partners, and Pantera Capital. For more information, go to www.harbor.com
BitGo is the market leader in institutional-grade cryptocurrency investment services providing security, compliance, and custodial solutions for blockchain-based currencies. BitGo is the world’s largest processor of on-chain bitcoin transactions, processing 15% of all global Bitcoin transactions, and $15 billion per month across all cryptocurrencies. The company has over $2 billion in assets in wallet, and a customer base that includes the world’s largest cryptocurrency exchanges and spans more than 50 countries. In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. BitGo is backed by Craft Ventures, DRW, Galaxy Digital Ventures, Goldman Sachs, Redpoint Ventures, and Valor Equity Partners.