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      BitGo Reaffirms Client Asset Protection Amid Expansion into New Services

      BitGo, a digital asset custodian, has emphasized that it cannot access or redeploy client assets without explicit permission from clients. Chief Product Officer Eugene Hahr stated that this commitment is enshrined in the company's custodial services agreements, which ensure that clients retain full ownership of their assets at all times. This assurance comes as BitGo expands its offerings into prime brokerage, staking, and tokenized assets, raising important questions for institutional clients about the security and management of their funds.

      The company has implemented measures to guarantee asset protection, including holding client assets on a strict 1:1 basis without rehypothecation, meaning that no client funds are reused for other purposes. Additionally, assets are maintained in segregated accounts, separate from BitGo's own balance sheet. BitGo also carries up to $250 million in insurance coverage from Lloyd's of London, although this figure represents a ceiling on coverage rather than a guarantee against all losses.

      To support its custodial promises, BitGo utilizes advanced technologies such as multi-signature wallets and multi-party computation (MPC). These systems require multiple approvals for transactions, ensuring that no single party can unilaterally move client funds. This infrastructure is particularly relevant as BitGo aims to scale its services in a 24/7 market environment, where traditional banking hours do not apply.

      As BitGo continues to grow its client base, which includes thousands of institutional clients, the company is positioning itself to offer additional services without compromising the integrity of its custodial role. Clients can choose to engage in activities like staking, but the default remains that no assets can be moved without their consent, reinforcing the message of control and security in asset management.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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