It has been announced that SettleBit financial solutions entered in a partnership with BitGo to provide a new Bitcoin custody service to its longtime supporters.
Crypto custody provider BitGo is expanding its services. The institutions that use BitGo Bitcoin custody service now receive a possibility to trade digital assets right within it. This is done via API integration, where a client’s price offer instantly matches with the network soon after verification of incoming funds. During the trading, the assets themselves remain in the cold storage.
Nick Carmi, who works as the Chief Financial Officer at BitGo, claims that it is very useful to have the ability to avoid hot wallets in trade:
“We know that many of our clients want to be able to trade without moving their assets out of cold storage. Using our settlement API, SettleBit has created a simple and elegant solution.”
The first trade did take place on 22 January 2020, with one of the large BitGo’s clients CTM Digital initiated a $100,000 bitcoin deal. Now, many of the tech companies in this field aim at the so popular OTC trading. The institutional clients can use both BitGo and its competitors – Seed CX and Gemini exchange. Many of the clients prefer using third parties to ensure that their bitcoins are ‘clear’ from drug trading and safe in the special vault.
BitGo didn’t ever selectively scam people like some other similar firms tend to do, especially when it comes to Monero. Right now, BitGo has more than $2 billion of client’s funds in management.
B2B Bitcoin Trading Is Available as Killer Feature
Leor Tasman, SettleBit’s CEO, claims that risk-free trading is the ‘holy grail’ for any crypto investor with brains:
“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.”
What is presumably a killer feature, is that BitGo clients will have the ability to transfer money directly to each other. All the coins will safely remain in the cold wallets, but the balances of companies will change. Just like on regular P2P exchange, institutions will receive the orders according to the best current rates.
Despite BitGo was avoiding major cryptocurrencies like Bitcoin Cash or Monero, they allow Bitcoin and Ethereum trading. In the future, custody provider plans to sign up for a set of stablecoins and other assets. And while Bitcoin maximalists keep dumping criticism on banks and institutions, firms like BitGo silently continue their service.