California-based digital asset management firm BitGo now offers instant trading services to its institutional clients . The new feature is the result of a partnership with SettleBit , a company that provides a unified digital asset trading infrastructure. BitGo is a financial services company specializing in Bitcoin and other digital assets, serving institutional investors.
In addition to managing more than $ 2 billion in crypto assets through its escrow service, the company now allows its clients to trade directly from their accounts, according to a press release. The first exchange took place on January 22nd and was for $ 100 worth of bitcoins. To make this possible, it has partnered with SettleBit, a digital asset trading settlement platform. Therefore, the transactions are executed through the BitGo settlement API and the SettleBit trading platform.
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This last feature also offers another essential characteristic. Institutional clients will also have the opportunity to trade with other custodians. This means that one institution can send or receive assets from another directly from cold storage. Furthermore, BitGo Trust clients instantly receive a price offer to buy or sell digital assets, which is combined with a liquidity network to find the best rate.
Transactions are completed in real time, once both parties' funds are fully verified. Currently, BitGo supports trading in USD and the two largest cryptocurrencies by market capitalization: Bitcoin and Ethereum . However, it plans to add several more utility tokens and stablecoins soon.
Adoption by institutional investors
SettleBit CEO Leor Tasman spoke about the partnership between the two companies, highlighting the new business feature and upcoming services for institutional investors:
“This represents a significant milestone for institutional clients in their ability to securely trade digital assets. Trading without liquidation risk is the Holy Grail for any investor, especially in crypto-block trading. 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 need, as many of them "They want to trade without taking their assets out of cold storage". On the other hand, with other large regulated trading and custody centers, such as Gemini, Bakkt and Grayscale's Bitcoin Trust, it appears that institutional investors have numerous different options on how to legitimately enter the Bitcoin market.