BitGo Unveils Token Management Service for Crypto Foundations

Big names like Worldcoin and LayerZero are among the first customers of the Token Management Service, announced on Monday.

Cryptocurrency custody platform BitGo has launched a Token Management Service for Web3 foundations and organizations to efficiently manage the lifecycle of their issued digital assets.

Major protocols like Worldcoin, LayerZero, Sui and ZetaChain are among the first customers of the service, which was announced on Monday.

BitGo is aiming to fill a gap in a fragmented market with its one-stop, regulated and insured custody platform for seamless digital asset vesting, unlocking and on-chain activities. The custodial token management service will be powered by BitGo Trust, the firm’s qualified custodian offering.

The Web3 world has progressed beyond simple digital asset transactions on a blockchain to a programmable economy, where new protocols can be created, tokenomics designed and tokens minted with just a few lines of code.

This leads to a scenario where protocol builders are mainly focused on fine-tuning technical details like tokenomics, validator steps and more, while aiming to increase adoption and validate the value proposition they promised to their venture capital backers, according to Thomas Chen, head of sales at BitGo. Leaving the nitty-gritty of token management to the end can turn out to be a “slow moving train wreck,” Chen added.

“When it comes to managing their tokens, these organizations are faced with a fragmented landscape,” said Chen in an interview. “It's a combination of non-custodial wallets, web-only solutions, needing to use a smart contract for distribution. So if I'm the head of operations for some new token protocol, I have to forge at least two different relationships, manage two to three different integration points, all while trying to have a successful mainnet launch. It's a logistical nightmare.”

Edit (February 27, 2023, 18:51 UTC): This story has been updated to correct the name of Kalshi's markets, which are political prediction markets, not prediction markets.

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Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.