The California-based digital asset management company, BitGo, now offers instant trading services to its institutional clients.
The new feature comes as a result of BitGo’s partnership with a company providing unified digital asset trading infrastructure, SettleBit.
BitGo Offers Trading From Its Cold Storage
BitGo is a digital asset financial service company operating with institutional investors. Aside from managing over $2 billion in cryptocurrency assets through its custody service, the firm now allows its clients to trade directly from their accounts, according to a press release shared with Cryptopotato.
The first trade took place on January 22nd and was for $100,000 worth of bitcoins.
To make this possible, BitGo has partnered up with SettleBit – a digital asset trade settlement platform. Therefore, trades are executed through BitGo’s settlement API and the SettleBit trading platform.
The latter also delivers another essential feature. Institutional clients will have the opportunity to trade with other custodians as well. It means that one institution can send or receive assets from another one directly from cold storage.
Furthermore, BitGo Trust clients instantly receive a price offer to buy or sell digital assets, which is matched with a liquidity network to find the best rate. Settlements occur in real-time, once both parties’ funds are completely verified.
So far, the platform supports trading for USD and the two largest cryptocurrencies by market cap – Bitcoin and Ethereum. However, it plans to add several more utility tokens and stablecoins soon.
Further Adoption For Institutional Investors
SettleBit CEO, Leor Tasman spoke on the partnership between the two companies, emphasizing on the new trading feature and upcoming services for institutional investors:
“This represents a significant milestone for institutional clients in their ability to securely trade digital assets. Trading with no settlement risk is the Holy Grail for any investor, especially on crypto block trades. Together with the world’s leading custodian, our technology is creating new opportunities for all market participants. We are excited about this opportunity and the continued development of our institutional services.”
BitGo’s Head of Financial Services, Nick Carmi, added that the trading feature is what their clients needed since many of them “want to trade without moving their assets out of cold storage.”
With other large regulated trading and custody venues, such as Gemini, Bakkt, and Grayscale’s Bitcoin Trust, it appears that institutional investors have numerous different options on how to enter the Bitcoin market legitimately.