- BitGo entered a partnership deal with Genesis Global Trading.
- The collaboration of the companies will unleash the potential of digital assets.
A cryptocurrency security company BitGo announced a partnership with an OTC service Genesis Global Trading to provide institutional investors with the access with high-frequency cryptocurrency trading.
It means that BitGo customers that use custodial services of the company will be able to perform high-frequency transactions via OTC platform Genesis Global Trading. For example. A client with 100 BTC held in a BitGo cold wallet will be able to receive a quote from Genesis and instantly sell coins for the quoted price. When the client accepts the deal, BitGo freezes his coins. Meanwhile, Genesis initiates a bank transfer in US dollars to BitGo.
Once the bank transfer is completed – this usually happens within 24 hours or more – Bitcoins becomes the property of Genesis. Meanwhile, the coins do not leave the storage, while the transaction is not registered in the public blockchain.
“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,” Michael Moro, CEO, Genesis Trading, commented.
The BitGo/Genesis addresses the time lag issue typical to cold wallet storage. Apart from that, it removes the counterparty and settlement risk usual to OTC cryptocurrency trading.
Thus, BitGo is expanding business from custody to clearing segment to demonstrate the real possibilities of digital assets.
“We can actually do real-time settlement; we can use digital tokens for dollars, and we can use them for digital tokens that you trade. We can do swaps with zero counterparty risk,” according to BitGo CEO Mike Belshe.
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