Goldman Sachs-Backed, BitGo Unveils Cold Storage Cryptocurrency Trading

by | Jan 18, 2019 | Cryptocurrency, Cryptocurrency News

BitGO | Cold Storage Cryptocurrency Trading Platform | Goldman Sachs

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.

BitGo

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.

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.

Read more: Upcoming Bitcoin Futures Exchange, Bakkt Secures Funding From World’s 23rd Richest Person

Arshmeet Hora

The idea of expressing one’s views and reviews through words is beyond intriguing. What started as a creative let out has now become a passion and a profession for Arshmeet K Hora. In her own words ” with every word, every article that I write, my passion towards this medium has grown stronger.”  Arshmeet covers latest crypto news and updates as well as what happening new revolving around Blockchain Technology.

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