US custodian BitGo has announced support for two new coins, Dash (DASH) and Stellar Lumens (XLM), the company’s founder and chief executive officer Mike Belshe told Fortune on Friday.
Dash was added last week because of its ability to make “instant payments” possible for institutional investors while XLM, which focuses on “global payments more for consumers,” will be adjoined in a couple of weeks. Currently, Stellar is the sixth largest cryptocurrency by market capitalization with $4.6 billion in value while DASH ranks number 13 with $1.5 billion market cap.
Commenting on the differences between BitGo and exchanges, Belshe said that his company is entirely dedicated to secure custodian services and targets mainly large players like hedge funds while trading platform focuses on retail investors.
“Exchanges sometimes offer custodianship, but they’re not qualified custodians themselves. They’re holding funds so that you’ll use their exchange. In other asset classes you don’t have the exchange hold the funds — it’s just not allowed,” BitGo CEO said.
“If the New York Stock Exchange went to the U.S. Securities and Exchange Commission “and added, ‘Hey, please let us be a custodian for the assets that we trade,’ the SEC would laugh them out of the room.”
Stablecoins pegged to US dollar have a significant potential like the several new projects including Circle’s USD Coin (USDC), Paxos Standard (PAX), and Gemini Dollar (GUSD) Belshe explained. However, the largest stablecoin, Tether (USDT) is something different, and there is “something wrong” as nobody knows the full story behind USDT, the CEO said.