Blockchain Security Firm BitGo Announces Support for Privacy-Centric Cash
California-based blockchain security firm BitGo has announced support for Zcash, the first open and permission-less cryptocurrency. In a Medium blog post, BitGo said that Zcash is now supported in both its multi-signature wallets and cold storage custody solutions.
Both BitGo and Zcash engineers worked together to integrate the zero knowledge proof token before enlisting the help of veteran clients for beta testing.
BitGo explains why it is supporting Zcash
The decision to support Zcash means that BitGo has now joined a long list of complaint firms including Circle, Gemini, and Coincase. One of the main reasons why it decided to offer support is because of pent-up demand for the privacy-centred cryptocurrency.
“We are working hard to offer our institutional clients the most complete portfolio of digital currencies,” said Ben Chan, CTO, BitGo.
“Zcash is a compelling digital currency that many hedge funds, exchanges and customers have been asking for because of its emphasis on privacy. We are glad to deliver a secure multi-signature implementation to store Zcash today.”
Despite the fact BitGo will now handle Zcash deposits from both shielded and unshielded address, all withdrawals can only be sent to unshielded addresses.
A closer look at Bitgo
BitGo is the world’s largest processor of on-chain Bitcoin transactions due to its high level of security, compliance, and custodial services.It processes 15 per cent of all global Bitcoin transactions and $15 billion per month across all cryptocurrencies. BitGo has a company base that spans more than 50 countries and includes the world’s largest cryptocurrency exchanges.
Back in January, BitGo had reportedly entered into an agreement to acquire Kingdom, a South Dakota-based fully chartered traditional financial asset custodian with $12 billion in assets under custody.But a few months later, it pulled out of the move and decided to build its own qualified custodian instead.
“We spent a lot of time over the course of this working with customers because ultimately that’s who we’re going to be serving and we realised they would be best served by a custodian who was entirely focused on their assets, so our focus has been to create a fully qualified independent digital custodian,” BitGo Marketing Vice President Clarissa Horowitz told CoinDesk.
A closer look at Zcash
The Zcash company, launched in 2016 by founder and CEO Zooko Wilcox, aims to set a new standard for privacy through the use of ground-breaking cryptography.It is built using Bitcoin Core’s codebase in order to improve anonymity for users. However, this has led to criticism of Zcash, as it is an excellent tool for bad actors.At this moment in time, Zcash is ranked 21 on the cryptos table and has a market capitalisation of $1.01 billion according to CoinMarketCap.
“We at the Zcash Company are excited that leaders like BitGo are adopting Zcash and that people are awakening to the benefits of financial privacy,” said Josh Swihart in a Zcash blog post. “We believe the upcoming Zcash Sapling upgrade will fuel greater adoption of Zcash’s privacy features.”