Wall Street banks are assessing a potential acquisition of BitGo as they move to secure digital asset infrastructure.

The development was discussed on the latest episode of the Blockchain Bulletin, where host Callum Williams said analysts remain bullish on BitGo despite a share price drop following its IPO in January.

He noted that the firm is viewed as a key provider for banks that want to offer crypto services without building systems internally.

“One analyst described BitGo as an enabler of digital asset infrastructure for banks looking to offer these services for the first time,” Williams said.

For banks, buying an established custodian would provide regulated crypto custody and settlement capabilities while reducing build time and compliance risk. As demand for digital asset exposure grows among institutional clients, traditional lenders are under pressure to deliver secure, compliant solutions.

The reported interest comes as other crypto firms restructure or expand.

Furthermore, the Blockchain Bulletin also looks into Gemini scaling back operations, Nexo re-entering the US after three years and Bridge securing approval for a US National Trust Charter.