Protocol builders face a fragmented landscape when it comes to figuring out the mechanics of token management, BitGo says.
Protocols such as Worldcoin, LayerZero, SUI and ZetaChain are among the first customers of the service.
Cryptocurrency custodian company BitGo is offering foundations and organizations a simplified way to manage the lifecycle of the digital assets they issue, with protocols like Worldcoin, LayerZero, Sui and ZetaChain among the service’s first customers.
Bitgo says it is filling a gap in a fragmented market, with a one-stop, regulated and insured custody platform for seamless acquisition, mining and on-chain operations of digital assets. The token management custodial service leverages the regulated boundaries of BitGo Trust, the company’s qualified custodian offering.
The Web3 world has evolved far beyond simple digital asset transactions on a blockchain to a programmable economy where new protocols can be devised, tokenomics invented, and tokens minted with just a few lines of code.
This leads to a situation where protocol builders are primarily focused on refining technical details around tokenomics, validator steps and so on, as they try to increase adoption and justify the value proposition they’ve given to their venture capitalists, says Thomas Chen, head of sales at BitGo . Leaving the nuts and bolts of token management until last could end up as a “slow-moving train wreck,” Chen said.
“When it comes to managing their tokens, these companies face a fragmented landscape,” Chen said in an interview. “It’s a mix of non-custodial wallets and internet-only solutions, with the need to use a smart contract for distribution. So if I’m the head of operations for a new token protocol, I have to establish at least two different relationships, manage two to three different integration points, all the while trying to pull off a successful mainnet launch. It’s a tactical nightmare.”