BitGo VS atato Custody: How do they Compare?
According to a new report from Scottish fintech Zumo, digital assets, and blockchain more broadly, are an area of keen enterprise interest. Roughly four in five believe that this technology will be very or somewhat important to their respective industries in the next 24 months.
Furthermore, the report states that there is a compelling business case for the use of blockchain, digital assets and/or cryptocurrencies within their organization.
It stands to reason then, that as digital assets proliferate in both their adoption and use-cases, protecting these assets as part of businesses’ wider security posture will become increasingly more important.
In this feature, we will conduct a thorough comparison between two prominent players in the crypto custody arena: atato Custody and BitGo. By exploring their unique offerings, features, and target audiences, we aim to shed light on why atato Custody offers a great alternative in this competitive landscape.
Table of Contents
atato: Features, Security and most Importantly, Who Will Get the Most Benefit from Using it?
atato Custody is specifically tailored to meet the needs of Small-to-Medium Enterprises (SMEs), providing a secure environment to store and manage digital assets within a custodial wallet while seamlessly interacting with decentralized applications (dApps).
The key strength of atato Custody lies in two things:
- its commitment to compliance and licensing, ensuring that businesses can safeguard and manage their digital assets while adhering to the stringent regulatory requirements of the crypto landscape. It’s important to note that atato can service customers in most jurisdictions, globally, with it being licensed in both Asia and Europe – with more licenses in the pipeline.
- atato Custody’s cost-effectiveness. BitGo’s billing includes transaction, withdrawal and Assets Under Custody fees calculated from average monthly USD balances. In comparison, atato’s custody solution has fixed prices as well as no transaction fees. What’s more, atato Custody offers tiered, per-wallet pricing, without any Assets Under Custody (AUM) fees. This affordability is particularly advantageous for SMEs seeking to scale their crypto operations without incurring hefty fees.
Furthermore, atato Custody boasts a range of wallet features within its various packages, providing flexibility tailored to the size and requirements of your operation. Regardless of the chosen package, security remains a top priority for atato Custody.
3. Security differences. atato’s platform employs Multiparty Computation Technology (MPC), which in combination with atato’s robust and resilient security program, provides a level of security that mitigates the risks of hacking. Furthermore, atato Custody, as a custodian, backs up its wallets with robust disaster recovery processes and technologies, offering another level of security and risk mitigation. This key differentiator sets it apart from BitGo’s custody wallet which backs up client keys by storing them in three separate ‘locations’ all offline – which may affect the fidelity of transactions:
- Client Key: In a cold wallet to initiate transactions.
- Backup Key: generated and stored by BitGo offline for disaster recovery.
- Platform Key: Generated and stored on BitGo HSMs. Used to countersign transactions.
Do note, BitGo also uses a security framework derived from MPC technology called Threshold Signature Scheme (TSS). TSS is used for their self-custody model, a product which is not the focus of this article.
Bring Your Own Chain (BYOC) & Bring Your Own Token (BYOT)
Another one of the hallmarks of atato Custody is its flexibility. The platform’s trademarked Bring Your Own Chain (BYOC) and Bring Your Own Token (BYOT) solutions empower users to secure and store every cryptocurrency across various blockchains, including Bitcoin, Ethereum Virtual Machine (EVM) chains, and several non-EVM chains. This cross-chain functionality enables Web3 SMEs to efficiently manage and secure their digital assets through a single user experience, eliminating the need for multiple custodians or additional developer resources in the ever-evolving blockchain landscape.
atato Custody offers several marquee features that enhance its utility. The Workspace functionality, akin to Slack channels, allows businesses to categorize their digital wallets based on anything they like, such as location, specific requirements, and rule sets, to give an example. This feature is especially valuable for Web3 businesses with distributed operations across multiple regions or departments, streamlining processes and improving overall efficiency.
Another significant feature is the Rule feature, which allows customers to automate transaction approvals or rejections, simplifying internal review processes. Businesses can create custom rules for individual transactions or multiple rules for specific wallets, granting them control over various aspects, such as limiting the amount that can be transferred at once or rejecting transactions to specific addresses.
atato Custody also incorporates Approvers and agents into its system operations structure. Approvers, which can be a user with a smartphone or atato’s system for automated approvals, play a critical role in approving operations on a wallet. The hybrid approach to approvers, involving both atato-operated and user-owned approvers, ensures robust security for atato Custody wallets.
Finally, these elements combine with atato’s secure API systems engineering, enabling customers to automate their processes in line with NIST’s guidance for engineering trustworthy secure systems.
BitGo: Catering to the Needs of Enterprises & Institutions
BitGo, on the other hand, caters to a distinct segment of the market: Web3 enterprises and larger businesses with substantial assets under management (AUM).
In order to do this, BitGo custody serves its larger partners well with exchange rails which offer a direct integration with some crypto exchanges. This feature allows BitGo clients to transfer large sums of funds on a private rail, particularly beneficial for companies needing to move funds in and out of exchanges frequently, such as traders and market makers.
Additionally, BitGo boasts integration with prominent DeFi protocols, facilitating direct and cost-effective access to DeFi opportunities. Similar to atato Custody’s WalletConnect solution that enables access to a diverse range of DeFi options, levelling the playing field for smaller businesses.
Compliance and Regulatory Alignment
atato Custody prides itself on its emphasis on regulatory compliance and licensing. For businesses operating within strictly regulated environments, partnering with a custodial solution that guarantees adherence to legal requirements is of utmost importance. atato has received SOC Type 2, ISO27001, HKTrust compliance certificates, mitigating potential legal risks for businesses dealing with digital assets in a constantly evolving regulatory landscape.
In contrast, BitGo may not offer the same level of compliance assurance. Enterprises operating in regulated industries may need to further implement additional compliance measures, such as complying with standards like CCPA and GDPR. Some businesses might even require a digital asset custody licence to utilise BitGo’s solution.
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atato Custody VS BitGo - Conclusion
Choosing the ideal digital asset custodial solution ultimately hinges on a careful evaluation of specific needs and priorities. atato Custody appeals to crypto SMEs seeking a compliant, cost-effective, and versatile asset management solution. In contrast, BitGo caters to larger enterprises seeking licences, compliant, and insured custodial wallets for large amounts of cryptocurrency.
The choice between atato Custody and BitGo should consider factors such as risk appetite, regulatory environment, scalability requirements, and the level of control desired over digital assets. With its licensed compliance, cost-effectiveness, and security features, atato Custody emerges as the optimal choice for crypto SMEs and businesses looking for a robust crypto asset management solution. It is clear that when making the decision between atato Custody and BitGo, businesses should prioritize security, compliance, and cost-effectiveness.