BitGo’s CEO Says Traditional Banks Can’t Win the Custody War – Here’s Why

BitGo CEO Mike Belshe asserts that crypto-native firms possess a structural advantage over traditional banks in the digital asset custody market. He argues that traditional financial institutions, such as Morgan Stanley, face inherent conflicts of interest due to operating trading desks alongside custody services. Belshe contends that BitGo, built specifically for custody and staking infrastructure, avoids these tensions, as its business model relies solely on being a neutral and secure custodian.

Revenue Model and Client Trust

BitGo's business model is supported by a revenue stream where over 80% is derived from custody and staking fees. This provides stable, recurring income that is less susceptible to the market volatility characteristic of exchange-dependent models. This predictability is a key factor for institutional clients seeking reliable custody solutions.

Regulatory Standing and Operational Scale

The company's credibility is bolstered by its federal banking charter, obtained in late 2025 from the Office of the Comptroller of the Currency, allowing it to operate as a National Trust Bank. As of September 30, 2025, BitGo held $104 billion in digital assets under custody, serving over 4,900 institutional clients across more than 50 countries. Its revenue for the first nine months of 2025 reached $10 billion, a significant increase from $1.9 billion in the same period the previous year.

Vision for Foundational Infrastructure

Belshe envisions BitGo as the foundational infrastructure layer for the entire crypto ecosystem, likening it to "the AWS of digital assets." This strategy positions BitGo as an indispensable service provider rather than a competitor to the firms it supports. Recent initiatives, such as providing the backbone for SoFi Bank's stablecoin and tokenizing its own shares on multiple blockchains, demonstrate this commitment to operating at the forefront of institutional crypto infrastructure.

Competitive Landscape and Future Outlook

Belshe's arguments come at a time of increasing regulatory clarity and growing institutional interest in digital assets, making the custody layer a critical competitive area. Analysts have identified BitGo as a potential acquisition target for traditional financial institutions, suggesting that rather than outcompeting BitGo, legacy banks may seek to acquire its established infrastructure and client base. Belshe emphasizes that a firm architected around neutral custody, with a federal charter and substantial assets, offers a distinct advantage over banks that have merely added crypto services.