BitGo, Inc., a provider of cryptocurrency security services, announced this Wednesday that it has teamed up with Genesis Global Trading, an over-the-counter (OTC) digital currency trading specialist to deliver a new service that will help institutional investors feel more comfortable entering into the nascent industry.
Under the agreement, institutional clients who store their digital assets with BitGo can now trade their crypto without having to move it onto an exchange. As part of the collaboration, Genesis will execute the trades on behalf of BitGo’s clients, without the need for them to open an account with the trading provider.
This collaboration enables BitGo’s customers to trade their crypto without needed to move their coins from cold storage or offline. In addition, there are no additional fees for this service, the statement said.
Commenting on the partnership, Mike Belshe, the CEO of BitGo said: “Some custodians are choosing to sacrifice security and safety by enabling fast withdrawals from cold-storage which makes their clients more susceptible to hacking, false instructions, and theft.”
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“Our partnership with Genesis, a FINRA and SEC regulated company, gives our clients access to liquidity through Genesis’ robust network of trading partners. And that solves the real problem which is the need to access liquidity – not the need to speed up withdrawals.”
The partnership will allow BitGo’s institutional clients to have access to online, real-time pricing for buy and sell orders, execute transactions from cold storage without needing to manage any keys, access Genesis’ liquidity, which consists of a network of trading partners with same day settlement.
BitGo partnership brings traditional execution times to the crypto space
According to a report from CoinDesk, a news outlet specializing in blockchain and cryptocurrency, the partnership between the two companies will allow traders to execute trades at the same speed they are accustomed to in the traditional financial markets.
This is achieved by resolving the time-lag cold storage issue as Belshe explains: “Because we have a BitGo Trust wallet ourselves, the coins are actually never leaving the BitGo system, just going from client to Bitgo to Genesis without ever being exposed to hot wallets and public blockchains.”
“BitGo has been a terrific, long-term partner to Genesis and we have a lot of confidence in their institutional offerings. We are an industry leader in digital currency trading and lending, and providing liquidity for companies like BitGo is an important part of our value proposition,” added Michael Moro, the CEO, Genesis.