Shining as one of the largest European cryptocurrency exchanges, Bitstamp has collaborated with blockchain-focused security firm BitGo to tap it as a custody provider striving to aid secure storage of digital assets. This partnership between BitGo and Bitstamp will render the exchange customers to enjoy a qualified custodianship that is subject to worth a whopping sum of $100 million insurance policy.
On Wednesday, there came the official announcement about the teaming-up of the two financial space leaders. The authorities informed that Bitstamp would kickstart the transferring of its assets under management to BitGo’s wallets from October 10, 2019. However, the total transfer amount, as well as the types of assets being transferred, were kept under wraps by both the concerned parties.
BitGo’s patent multi-signature wallet solution is quite popular amongst the class of institutional investors as it offers enterprise-grade custodian services for their assets along with an application programming interface access to its efficient security-oriented platform. As per the news, BitGo has served over 300 clients with its systematically structured custodial and trust services.
A representative of Bitstamp stated that “We considered all available options, but believe BitGo is a good match because we see them as a pioneer in the industry and an essential piece of the crypto ecosystem.” He further added, “That said, we plan on diversifying our custody options in the future in order to serve the different needs of our diverse customer base.”
While commenting on the past interactions of the two firms, a spokesperson said that the firms have experience of working with one another as Bitstamp began using BitGo’s hot wallet “years ago.”
Mike Belshe, CEO of BitGo, shared his views on the partnership by saying that “Institutions need a lot more than an app with pretty charts. They need proper security, which includes technology, people, and processes, and they need exceptional client service. We’re proud to have earned Bitstamp’s trust and their business.”
Last year, Bitstamp teamed-up with Stockholm-based Cinnober firm to overtake the firm’s matching engine. This made Bitstamp operate as a “de facto” clearinghouse. It is also the owner of BitLicense from the New York State Department of Financial Services (NYSDFS). Post this; the firm is adamant about expanding its New York arm.