Specializing in security company BitGo has announced a partnership with OTC service Genesis Global Trading, in which institutional investors will have access to high frequency trading cryptocurrencies. It is reported by CoinDesk.
So, investors that use custodian solution BitGo, will be able to use OTC-Genesis Global Trading platform for transactions at a rate that until now was available in traditional financial markets.
For example, if the client keeps 100 PTS in a cold wallet BitGo, he may get an offer from Genesis and immediately sell the coins at this price. At the moment when the client accepts a proposed transaction, BitGo holds bitcoins, considering them the owner of Genesis, which in turn triggers a Bank transfer in USD to the address of BitGo.
As soon as the Bank transfer is completed, which can take 24 hours or longer, bitcoins become the property of Genesis, the coin vault does not leave, and the transaction is accordingly not recorded in the public blockchain.
“Because we have the Trust BitGo wallet, coins don’t leave the system BitGo. They just get moved from the client to BitGo and then to us, without getting into hot wallets”, — said CEO of Genesis Trading Michael Moreau.
The head of BitGo, Mike Belch meanwhile, noted that this approach also helps to solve the risks of not performing calculations that can occur in OTC trading cryptocurrencies. For example, there can be scenarios in which the buyer agrees to the proposed price, while the seller wants you to send him cash, and when received sends bitcoins, the cost of which can reach several million dollars.
“No one does that with other asset classes. No one wants to send to an unknown person such sums of money,” he said.
Expanding its offer with a purely custodial to design, BitGo, according to the head of the company, also shows what opportunities does the cryptocurrency.
“We can make payments in real time, we can use digital tokens instead of dollars and dollars instead of tokens and exchange with zero risk of default obligations,” added Mike Bell.
We will remind, in September 2018, the company BitGo has received in the U.S. status as a qualified custodian of the cryptocurrency, which allowed it to offer institutional investors regulated financial services. A month later, the company raised $15 million investment from Goldman Sachs and Galaxy Digital Ventures.
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