BitGo acquires token platform Harbor to expand into the digital securities space

Quick Take

  • Cryptocurrency custodian BitGo has acquired security token startup Harbor to expand outside of the custody market
  • BitGo will take over Harbor’s subsidiaries with a broker-dealer license and a transfer agent registration as well as absorbing the startup’s technology, the talent, and the clients
  • The security token market has been slow to take off; Harbor saw its high-profile dorm tokenization deal fall apart and has not shown progress on its plan to tokenize venture capital firm funds.

Crypto custody provider BitGo has snapped up security token startup Harbor as it looks to expand outside of the sleepy custody market. 

The deal, announced Tuesday, came together quickly, according to a spokesperson. BitGo declined to share details around the size of the deal or when talks between the two firms first began. Harbor rode the 2018 security token hype — raising $38 million in the process — but struggled to execute on some of i