BitGo, the Goldman Sachs-backed custodian service for cryptocurrency, has joined the Universal Protocol Alliance. The company announced the move yesterday. The Universal Protocol Alliance works to bu
BitGo, the Goldman Sachs-backed custodian service for cryptocurrency, has joined the Universal Protocol Alliance. The company announced the move yesterday.
The Universal Protocol Alliance works to build the Universal Protocol Platform, which addresses a basic constraint in the crypto space: blockchains function as isolated networks. Bitcoin operates on one system, Ethereum on another. You can't run Bitcoin directly on the Ethereum blockchain. The UP Platform solves this by creating "universal tokens" that operate across multiple blockchains. Smart contracts on the platform represent each token, tying it to its original blockchain asset.
The Alliance has launched three tokens: Universal Bitcoin, the Universal Dollar (UPUSD), and the Universal Euro (UPEUR). The group plans to add more.
BitGo functions as a custodian, holding cryptocurrency in web-based vaults for users. Coinbase relies on BitGo's infrastructure, though the company also operates independently for other clients. The vaults provide more protection than basic web wallets. Hardware wallets and paper wallets remain the most secure options, but BitGo's approach represents a major step up from typical online storage. This matters because most people won't manage a hardware wallet or follow strict cryptographic best practices. For Bitcoin to achieve mainstream adoption, it needs solutions that don't demand technical expertise from ordinary users.
The Universal Protocol Alliance now includes Uphold, Brave, Cred, Blockchain at Berkeley, FBG Capital, and BitGo.
Mike Belshe, BitGo's CEO, discussed the partnership in a press release: "We're pleased to be supporting a standard that can help move the crypto community forward by solving issues of interoperability and the safeguarding of crypto assets." BitGo will apply its security standards to the UP Platform itself.
The UP Platform opens doors for institutional money. These investors expect familiar tools, and the platform delivers. They could borrow fiat currency against their crypto holdings. Exchanges benefit as well. By representing assets as proxy tokens on the UP Platform, they can add trading pairs without listing each asset separately on traditional order books.
Scaling and expansion remain the priorities. The Alliance must handle growing transaction volume and add more tokens to the platform. Dan Schatt, chairman of the UP Alliance, said in a statement: "We're thrilled to welcome BitGo's support of the Universal Platform standard and its family of Tokens. BitGo's experience and thought leadership will help support the Alliance scale its services to support the growing retail and institutional crypto community."
