Prime Trust
Prime Trust provided API infrastructure for fintech custody, compliance, and payments (DEFUNCT).
⚠️ INACTIVE: Prime Trust was a technology-driven trust company that provided API-based financial infrastructure for fintech and digital asset companies, offering custody, funds processing, compliance, and transaction settlement services. The company served nearly 700 B2B clients including Swan, Abra, Dapper Labs, and Binance US. Prime Trust filed for Chapter 11 bankruptcy in August 2023 and is no longer operating.
Problem solved
Fintech and crypto companies needed regulated custody, AML/KYC compliance, and transaction settlement without building infrastructure from scratch.
Target customer
Fintech companies, digital asset platforms, and crypto exchanges requiring regulated custody, compliance, and payment processing infrastructure.
Founders
S
Scott Purcell
Founder & CEO
Founded Prime Trust in 2016; later founded Fortress Blockchain Technologies after departing in 2021.
T
Tom Pageler
Co-CEO
Co-CEO of Prime Trust LLC during operations; limited public background information available.
Funding history
Seed/Conventional Debt
$4.79M
April 2019
Led by Unknown
· Unknown
Series A
$64M
July 2021
Led by Mercato Partners
· Samsung Next, Nationwide, Commerce Ventures, Ayon Capital, Kraken Ventures
Series B
$107M
June 2022
Led by Multiple
· FIS, Fin Capital, Mercato Partners, Kraken Ventures, Commerce Ventures, William Blair & Company, Decasonic, University Growth Fund, Gaingels, GateCap Ventures, Seven Peaks Ventures
Total raised:
$171M
Industries
Pricing
Revenue model: subscription fees, transaction fees, and service charges. Zero AUM fees on digital asset custody (Bitcoin, Ethereum, ERC20, Stellar). $50 disbursement fee for crypto asset processing plus network costs.
Notable customers
Swan, Abra, Dapper Labs, Binance US
Integrations
Swan, Abra, Dapper Labs, Binance US
Website
Competitors
Anchorage Digital
Focused institutional crypto custody with on-chain security model.
Fidelity Digital Assets
Broader traditional financial institution backing with enterprise-scale infrastructure.
Omniex Holdings
Digital asset trading and settlement infrastructure.
Choice
Alternative trust company structure for fintech services.
Why this matters: Prime Trust was a notable infrastructure play that aimed to 'disrupt the trust industry like PayPal disrupted merchant processing.' It raised $171M across three rounds and achieved rapid growth with 250M API calls monthly and $100M+ annual revenue-run rate by 2021, but its August 2023 bankruptcy highlighted risks in the fintech infrastructure space. The company's collapse raises questions about regulatory compliance and capital efficiency in crypto custody services.
Best for: Previously ideal for fintech and crypto companies needing regulated custody, compliance, and payment processing without regulatory licensing burden (DEFUNCT).
Use cases
Crypto Exchange Custody
Digital asset exchanges used Prime Trust as a qualified custodian to hold Bitcoin, Ethereum, and ERC20 tokens for customers. This eliminated the need for exchanges to build proprietary custody infrastructure or pursue their own trust company licenses.
Fintech Compliance & Payments
Fintech platforms integrated Prime Trust's APIs to handle AML/KYC compliance, funds processing, and settlement. This allowed companies like Swan and Abra to focus on user experience while outsourcing regulated financial operations.
Crypto IRA Products
Prime Trust launched Crypto IRA beta in June 2022, enabling retail investors to hold digital assets in tax-advantaged retirement accounts through fintech partners.
Alternatives
Anchorage Digital
Offers institutional-grade custody with proprietary on-chain security; higher minimum account sizes.
Fidelity Digital Assets
Backed by major financial institution; broader traditional asset classes; higher compliance overhead.
Fortress Trust
Founded by Prime Trust's own founder Scott Purcell after leaving; serves customers who migrated from Prime Trust.
FAQ
What did Prime Trust do? +
Prime Trust operated as an API-first trust company providing custody, compliance, funds processing, and transaction settlement for fintech and digital asset companies. The company served nearly 700 B2B clients and processed 250 million API calls monthly at peak operations. Prime Trust filed for Chapter 11 bankruptcy in August 2023 and ceased operations.
How much did Prime Trust cost? +
Prime Trust charged subscription fees, transaction fees, and service charges. Notably, it offered zero AUM fees on digital asset custody, with a $50 disbursement fee for crypto assets plus network costs. Specific enterprise pricing was not publicly disclosed.
What are alternatives to Prime Trust? +
Anchorage Digital (institutional crypto custody), Fidelity Digital Assets (traditional finance backing), Fortress Trust (founded by Prime Trust's founder), Omniex Holdings (digital asset settlement), and Choice (alternative trust company).
Who used Prime Trust? +
Target customers were fintech platforms, crypto exchanges, and digital asset companies. Named customers included Swan, Abra, Dapper Labs, and Binance US. Prime Trust had nearly 700 total B2B clients before bankruptcy.
Why did Prime Trust fail? +
Prime Trust filed for Chapter 11 bankruptcy in August 2023. Specific causes were not publicly disclosed, but the company may have faced regulatory pressures, operational challenges, or market conditions typical of the crypto industry downturn in 2023.
Tags
crypto custody
digital assets
fintech infrastructure
compliance
AML/KYC
API-based banking
defunct
bankruptcy