Compass Point: "BitGo an attractive acquisition candidate for traditional financial firms"
Summary
- A Compass Point analyst said BitGo could be an attractive acquisition target for traditional financial firms seeking to expand their digital-asset businesses.
- The analyst said BitGo provides a comprehensive suite of services that can be integrated into existing prime brokerage, enabling traditional financial firms to offer clients digital-asset-related solutions.
- He said that if BitGo narrows the gap with competitors such as Galaxy and Coinbase, it could significantly increase revenue, and he presented his investment view as 'Buy.'
An analysis suggests that BitGo, a digital asset (cryptocurrency) custody firm, could become an attractive acquisition target for traditional financial institutions looking to expand their digital-asset businesses.
According to crypto-focused media outlet CoinDesk on the 17th (local time), Ed Engel, an analyst at U.S. investment bank Compass Point, said in a report that "BitGo offers a comprehensive suite of services that can be integrated into existing prime brokerage," adding that "traditional financial firms could provide clients with digital-asset solutions through an acquisition of BitGo."
He added that "if BitGo narrows the gap with competitors such as Galaxy and Coinbase, it could significantly increase revenue," and set his investment view on BitGo at 'Buy.'
Compass Point said BitGo's integrated capabilities across digital-asset custody, trading and lending could be a strength in terms of synergies with traditional financial institutions.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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