Crypto companies are working with Big Four accounting firms to get Wall Street to trust them

David Ryder / Stringer

• 2 of the 'Big Four' accounting firms are helping crypto startups shake-off their scrappy roots with a little-known tech audit.
• BitGo, a crypto custody shop, is one of the first firms to complete a so-called SOC2 audit, which shows its systems meet Deloitte's standards.
• Other crypto firms are looking to complete the audit, as well.

Bitcoin companies have a branding problem.

The nascent market for digital coins is known for its spine-tingling volatility and hacks.

BitGo

BitGo CEO Mike Belshe.

That's part of the reason institutional investors don't trust firms across the landscape with their money. But crypto service providers and exchanges are trying to lure in big money by shaking off their scrappy roots and holding themselves to Wall Street standards.

To that end, many are partnering with 'Big Four' accounting firms to acquire a so-called SOC2 certification, a way to prove to clients that they have the proper functioning security systems in place to keep funds secure.

BitGo, a crypto custody firm, for instance, is leading the charge and recently completed its SOC2 with Deloitte, the firm told Business Insider.

The designation, which took over a year for BitGo to complete, means the firm is following stricter rules and that Deloitte will come in to test systems to ensure they are meeting SOC2 standards.

"$15 billion of all crypto is coming through us per month," said Tom Pageler, chief security officer at BitGo."That's across 50 countries."

"We are in the position where we have to show how to do this right, and know we have a third-party to show our clients that we are," Pageler added.

BitGo may be the first firm to complete a SOC2, but it's not the only firm looking at getting one. Elsewhere, Coinbase is partnering with Deloitte on a SOC2, company insiders told Business Insider. New York-based rival Gemini is also looking into getting a SOC2, a spokeswoman told Business Insider.

KPMG, a Deloitte rival, is getting inbounds from crypto companies about SOC2 designations.

Kiran Nagaraj, a managing director at the firm focusing on crypto, said the trend is the latest signal of the crypto space's maturation.

"In addition to the white glove services - such as a prime brokerage - institutions are going to look for something like this," Nagaraj said in an interview with Business Insider.

"Exchanges are constantly being hacked and so when a major investment bank wants to use an exchange they want to know there is some sort of assurance," Nagaraj added. "And this is where a SOC2 report comes in, it gives a level of comfort."

More than $800 million worth of cryptocurrency has been stolen by hackers this year, as per research by Autonomous Research, a financial analytics provider.

The biggest hack this year took place on Coincheck, a Japanese-based exchange which had more than $500 million worth of crypto stolen in late January. Last month, South Korean exchange Bithumb was targeted, as hackers made off with around $30 million while the company suspended operations and moved its crypto holdings to cold storage.

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