Bitcoin exchange Kraken is the latest to employ BitGo’s multisignature bitcoin wallet solution.
Kraken is the world’s largest venue for exchanging bitcoin and euros. It has until now employed a custom off-chain system involving multiple parties, which was conceptually similar to BitGo’s multisig solution.
Multisignature wallets require more than one signature to sign transactions, thereby minimizing the chances of hacking-related theft.
Kraken CEO Jesse Powell had warm words for BitGo, commenting, “While we’ve always prioritized security, this partnership allows us to free up valuable resources internally, and provide greater transparency and comfort to our clients. Anyone who needs to have custody of or escrow bitcoin would benefit greatly from BitGo’s highly capable team of industry veterans. I’m looking forward to what we do together next.”
BitGo’s multisig solutions have now been adopted by several of the larger bitcoin exchanges, including Bitstamp and Bitfinex, as well as numerous other notable bitcoin businesses. The aforementioned exchanges are among the few to have reported security-related incidents in 2015, and both made the switch to BitGo not long after.
Last month, BitGo reported that it transacted $1 billion worth of bitcoin in a single quarter. Since launch in 2013, the startup says, not a single bitcoin was stolen from its wallets.