BitGo, a San Francisco-based a digital currency payments processor, has launched a new suite of services for financial institutions that engage in Bitcoin-based commercial transactions.
The services are based on multi-signature security, which requires authorization from multiple parties before a transaction can be approved. The new BitGo Enterprise services were "designed from the ground up to give organizations the power to securely store and effectively manage Bitcoin holdings," says BitGo CEO and co-founder Will O'Brien in an April 8 press release.
For example, BitGo uses a "2-of-3 key" configuration that requires two parties to provide keys to sign a transaction. BitGo authenticates a user's identity, adheres to corporate treasury policies and spending limits set by the organization and handles fraud risk, the company says.
Users can assign spending limits and velocity limits, enact delays on large transactions and whitelist recipient addresses, BitGo says. In addition to BitGo Enterprise, the company is introducing BitGo Cold Key, which allows users to generate and store keys offline to improve security.
BitGo's users include BitPay, a Bitcoin payment processor with over 27,000 registered merchants.
"I'd like to see all of BitPay's merchants protected by multi-sig wallets by the end of 2014," says Tony Gallippi, CEO of BitPay, in the release.
BitGo launched its multi-signature Bitcoin wallet in 2013, backed by Silicon Valley investors including Bridgescale Partners, Bill Lee and Eric Hahn.
Recently, the Bitcoin startup Ciphrex launched its own multi-signature wallet for Bitcoin users.