BitGo Launches New Financial Transparency Service

BitGo has announced the release of Verified by BitGo, a tool aimed at allowing customers to provide greater financial transparency.

AccessTimeIconJun 30, 2015 at 1:01 p.m. UTC
Updated Sep 11, 2021 at 11:45 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

BitGo has announced a new service that leverages the security firm's status as a consigner on its multisig accounts to allow customers the means to provide greater financial transparency.

As part of the announcement, bitcoin firm ChangeTip will use the new Verified by BitGo service to demonstrate its account holdings. The tipping platform will display its bitcoin solvency on its website, listing assets and liabilities in real-time along with information specific to individual users.

Links to the Verified by BitGo page will also be displayed within each user's ChangeTip account page and on the website's home page when users aren't logged in to the service.

According to the company, Verified by BitGo is seeking to become a foundational security feature for companies operating on the blockchain in the same way that VeriSign's offerings helped expand consumer trust in e-commerce.

As explained by BitGo CTO Ben Davenport, Verified by BitGo aims to mainstream the complex proof of reserves processes long used by prominent companies in the industry as a way to build consumer trust.

Davenport told CoinDesk:

"You've seen this a number of ways done over time. You've seen it very ad-hoc, where an exchange would make a very large transfer to prove that they had control of the funds. That's very risky, and fraught with operational risk."

The service also intends to showcase the ability of BitGo's technology in tracking more conventional assets, as the service will be able to provide proof of fiat currency reserves for companies that keep consumer balances in such holdings.

As such, Davenport sees bitcoin exchanges as one of the sectors best capable of driving adoption of its new tool, though such discussions, he said, are still in the early stages.

"We're having conversations with exchanges. I don't think we have specific names but we hope to launch with some additional customers," he said.

Piggy bank image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.