BitGo, specializing in security issues, has announced a partnership with the Genesis Global Trading OTC service, in which institutional investors will have access to high-frequency cryptocurrency trading. It is reported by CoinDesk.
So, investors who use BitGo custody solutions will be able to use the Genesis Global Trading OTC platform to enter into transactions at a speed that has so far been available in traditional financial markets.
For example, if a customer holds 100 bps in a cold BitGo wallet, he can get an offer from Genesis and instantly sell coins at that price. At the moment when the client accepts the deal offered to him, BitGo retains the Bitcoins, considering them to be owned by Genesis, which in turn initiates a bank transfer in dollars to BitGo.
As soon as the bank transfer is completed, which may take from 24 hours and longer, the Bitcoins become the property of Genesis, while the coins themselves do not leave the vault, and the transaction, respectively, is not recorded 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.
CEO, Genesis Trading
The head of BitGo, Mike Belshe, noted this approach also helps to solve the risks of not performing calculations that may arise when OTC cryptocurrency trading. For example, these may be scenarios in which the buyer agrees to the price offered to him, while the seller asks to transfer cash to him and only after receiving them sends the Bitcoins, which can cost several million dollars.
Nobody does this with any other asset class. Nobody wants to just wire someone that kind of money. 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.
In September 2018, BitGo received the status of a qualified custodian of cryptocurrencies in the United States, which allowed it to offer regulated financial services to institutional investors. A month later, the company raised $ 15 million in investment from Goldman Sachs and Galaxy Digital Ventures.