Californian startup BitGo announced that institutional customers can now deposit funds in fiat using the service BitGo Trust.
According to BitGo representatives, the new option will significantly speed up operations and make it easier for fiat-based “unregulated liquidity providers” to work with fiat.
For liquidity providers who are not regulated to hold fiat or digital currencies, easy access to fiat reduces trade settlement time. Without a fiat account, traders must transfer money each and every time they want to execute a buy order. This process is both time consuming and cumbersome, relying on external parties for wire transfers as well as the transfer of assets between accounts. More importantly, a delay in getting coins to market can cause market risk in price fluctuations.
BitGo and Genesis Global Trading OTC service are seeking to simplify access to liquidity to institutional investors.