California-based blockchain security firm, BitGo has announced its partnership with Genesis Global Trading. Genesis Global Trading is a digital currency group company that offers over the counter (OTC) cryptocurrency trading and allows its clients to trade crypto assets directly from BitGo’s highly secure offline storage or by using private keys.
This service by BitGo provides its clients with a user interface. This is to see the pricing for the buy and sell orders of cryptocurrencies in real-time. With this partnership, Genesis will execute the exchanges without requiring BitGo’s customers to open new accounts.
BitGo’s clients will get the service at no additional charge. Genesis Global Trading will make money by pocketing the bid-offer spread or the difference between the purchase and sell rates.
Beginning with immediate effect, BitGo customers will have the ability to execute inner settlements around the same time. Genesis’ controls high liquidity dependent on a major network of trading partners.
According to BitGo CEO, Mike Belshe, a few custodians prefer to forfeit security by offering quick withdrawals from cold-storage. This puts them in danger of being hacked or deluded by false guidelines. He further added that this service will come with the same security and safety guarantees.
“Some custodians are choosing to sacrifice security and safety by enabling fast withdrawals from cold-storage. This makes their clients more susceptible to hacking, false instructions, and theft. Our partnership with Genesis, gives our clients access to liquidity through Genesis’ robust network of trading partners. This solves the real problem which is the need to access liquidity – not the need to speed up withdrawals.”
–According to the CEO of BitGo, Mike Belshe
According to CEO of Genesis Trading, Michael Moro, a wide range of institutional crypto investors and large traders have an inclination towards over-the-counter markets due to the liquidity available. Additionally, hacking risks discourage them from utilizing trade exchange companies. As recently revealed via an assessment conducted by blockchain security firm, CipherTrace, in the first three quarters of 2018, cryptocurrencies worth almost $1 billion were stolen.
Another advantage that users of the service can expect to enjoy by trading their digital assets while in cold storage is greater predictability with respect to prices. As of now, there is a risk that prices could move against investors when they are loading their digital assets to the hot wallets of crypto trade exchanges. For the most part, this is a procedure that takes at least a day or two.
More specifically, funds which a client may want or need to move are secured in BitGo’s storage. Genesis sents an alert to get the funds ready, so that they can in turn, transfer the dollar equivalent to BitGo.