BitGo CEO Warns Crypto One-Stop Shops Pose Catastrophic Risk

BitGo CEO Mike Belshe has sounded the alarm about crypto one-stop shops, warning that they pose significant risks to the market. Speaking at Korea Blockchain Week 2026 on October 2, he cautioned that vertically integrated digital asset firms could trigger a collapse similar to the 2008 failure of Lehman Brothers.

Belshe's main concern is functional separation. He believes exchanges, brokerages, and custodians should be distinct businesses, rather than divisions of the same company. This, he argues, would prevent the kind of catastrophe that would occur if a major exchange also held custody of assets.

In his view, this risk is comparable to the New York Stock Exchange failing, which would have devastating consequences for the entire market. He even suggested that a crypto equivalent could have broader implications.