BitGo, Palo Alto-based blockchain security company announces a platform that will enable traders to trade in cryptocurrencies without having to take it out of cold storage. Initially, the new platform will deal in trades of Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple, and ZCash.
Just days after cryptocurrency exchange Cryptopia got hacked and multiple fingers were raised over the secureness of cryptocurrency trading, BitGo introduced a platform that will allow traders to buy and sell digital assets right from BitGo’s cold storage custody.
In October 2018, BitGo closed a Series B funding round mincing $58.5 million and attracting investors such as Novogratz’ Galaxy Digital Ventures and Goldman Sachs.
The BitGo team will team up with SEC and FINRA-regulated OTC trading platform Genesis Global Trading in order to establish the necessary infrastructure, liquidity, and compliance.
The CEO of Genesis Trading, Michael Moro added that the platform will essentially match BitGo customer’s buy and sell orders. The assets will never leave cold-storage since Genesis has a cold wallet with BitGo. This move is aimed to attract institutional investors by offering them custodial satisfaction.
Many industry experts have noted over the years that the only way to invite attention from the institutional investors is to incorporate an institutional-grade custody solution. Novogratz has himself stated a while back that such a solution will propel the next bull run.
“I think the next move up is going to need custody from a trusting source. It’s going to need a little more regulatory clarity. […] We wouldn’t take out $10,000 without those two things because that’s what brings the institutional investors in. But we’re going to get there.”
Another serious development in this regard, Bakkt’s warehousing solution is awaiting regulatory approval. Bakkt is aimed at enabling pre-funded purchases and sales of Bitcoin futures, essentially eliminating the risk of default.