California based Blockchain security company BitGo, and Bitcoin (BTC) over-the-counter (OTC) trading platform Genesis Global have teamed up to enable clients to directly trade cryptocurrency assets that are held in BitGo’s custody.
The recent collaboration is working on to facilitate the trading process without having to move digital assets from the custody service to a crypto exchange. The move will improve the trading experience, especially for institutional clients. With that, BitGo’s clients will not have to open new accounts after the partnership with Genesis. Interestingly, as Genesis Global Trading will make money by pocketing the bid-offer spread, BitGo’s clients will not be required to pay any extra charge. Genesis Global Trading will also make money from the difference between the buy and sell rates.
Moreover, the CEO of BitGo, Mike Belshe guarantees the same security and safety in the service. He notes, “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. 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.”
In the partnership, both the firms aim to work on the counterparty and settlement risk attached with some OTC crypto trading, which according to Belshe is the “who goes first” problem.
Further, Genesis Trading CEO Michael Moro commented on the partnership, “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.”
Notably, Genesis Global Trading is a subsidiary of the Digital Currency Group, while having two subsidiaries namely InsideVenture, Inc. and Aspenwood Capital. Genesis provides services related to over-the-counter crypto trading across the world. Back in May 2018, the firm obtained the BitLicense from the New York Department of Financial Services.
On the other hand, blockchain firm BitGo is a digital currency wallet provider, which offers tools for storing more than 100 cryptocurrencies and tokens.