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BitGo, a major Palo Alto-based cryptocurrency startup, is adding Stellar Lumens (XLM) and Dash (DASH) to its list of cryptocurrencies that it offers custodian solutions for, signaling that the two cryptocurrencies are seen as being unique and practical enough to pass the company’s selective coin addition process.
Customers will be able to generate wallets for Dash, a spin-off of Bitcoin aimed at being a more effective means of payment, starting Friday, and wallets for Lumens starting sometime in the next couple of weeks.
BitGo markets themselves as being the “world’s most secure wallet provider,” so the addition of XLM and DASH wallets could be exciting for investors in the two cryptocurrencies. The startup is also the largest Bitcoin processor in the world, with over $15 billion in monthly transactions with clients from over 50 countries.
BitGo CEO: Dash and Stellar Lumens Offer Unique Features to Users
The announcement regarding the addition of XLM and DASH came from Mike Belshe, BitGo’s founder and CEO, while speaking on Fortune’s Balancing the Ledger FinTech video series. Belshe specifically noted that the addition of the two new cryptos is due to their unique features that “offer some advancements, particularly around payments.”
Specifically, Belshe explains that the addition of Dash is due to the cryptocurrency’s “instant payment” and “privacy payment” features that are proving useful for many people, specifically those in countries like Venezuela, who are using Dash to avoid Hyperinflation and damaging fiscal policies.
Ryan Taylor, Dash Core Group’s CEO, recently spoke to Business Insider about the adoption of Dash in Venezuela, saying:
“We are seeing tens of thousands of wallet downloads from the country each month… Earlier this year, Venezuela became our number two market even ahead of China and Russia, which are of course huge into cryptocurrency right now.”
Belshe also explains that Stellar Lumens was also a clear pick for BitGo due to its narrow focus on providing “global payments for more consumers,” which sets it apart from Bitcoin due to its specific focus on transactions rather than being a store of value.
Stellar Lumens has been seeing increasing adoption rates, specifically from IBM’s new cross-border settlement system, World Wire, which uses Stellar’s blockchain to process international transactions.
That being said, it is important to note that institutions looking to use World Wire are not required to use XLM to conduct the transactions, and the institutions have the ability to choose any cryptocurrency (whether it be XLM or a stable coin) to transact with. Many investors assume, however, that XLM will be the go-to choice due to its seamless compatibility with the Stellar blockchain.
BitGo’s Additions Come Amidst Increasing Competition
As to the increasing rate of cryptocurrency custody solutions, including those potentially being offered by JPMorgan Chase and the New York Stock Exchange, Belshe contends that BitGo will always be seen as a better choice due to custody being its sole focus. This is compared to exchanges that simply want to hold funds to encourage the use of their connected exchange.
Belshe explained that if the NYSE went to the SEC and said “‘Hey, please let us be a custodian for the assets that we trade,’ the SEC would laugh them out of the room.”
Featured image from Shutterstock.
