By
Steve Muchoki
April 23rd, 2024
Cryptocurrency asset trading and custodian BitGo is expanding its offering for institutional traders with the news BitGo Prime platform.
Digital asset security and trust company BitGo is launching a new institutional platform. The platform called BitGo Prime is targeted exclusively at institutional traders. Bitgo Prime is to offer a full range of trading services to its clients. This comes after BitGo started crypto lending services in March this year. The new platform will combine, lending trading and custodial services together.
BitGo Prime Platform for Institutional Investors
BitGo has been working with institutional investors and traders for a bit. head of financial services and new CEO of BitGo Nick Carmi told sources:
“BitGo has always been focused on servicing institutional investors. What’s different here is that we’ve launched a prime broker business to deeply integrate the services of lending, trading and custody.”
He also indicated that private-beta trading had been accessible for a few months.
The new platform allows trading of cold storage cryptocurrency assets. Those assets are insured. BitGo has said that the assets insured are in BitGo Trust’s possession. BitGo Trust is a regulated assets custodian.
The new platform also offers traders anonymity. The traders will remain anonymous to market makers. Clients will undergo Regular Know-Your-Customer (KYC) and Anti-Money laundering compliance measures. BitGo has indicated that the client will not be anonymous to BitGo. The client will remain undisclosed though to others. This is in a bid to ensure the neutrality of participants in the trade process.
The custodian also indicated that this is standard practice when trading traditional assets.
This represents another fundamental step in the right direction. The crypto-space has been gaining ground recently. More institutional investors taking a look at cryptocurrencies and their underlying technologies.
As this occurs, more high-grade stable and secure solutions have to come unto the scene. In 2016, Bitfinex alleged that hackers stole about $72 million from its Hong Kong exchange.
The 2016 scenario may be gone but the scars remain. The use of cold storage inured wallets provide a deeper level of security and build investors’ confidence.
New Trend Emerges
BitGo’s introduction of a new product is also a symptom of an emerging trend. Institutional investors are the new whales. Cold, calculated, and daring, they make moves that serve their purposes.
As such, much of the volatility of the crypto-space will occur in patterns similar to other markets. But this time with faster price movements. Bitcoin and the altcoins are gaining recognition. They won’t lose their nature but they are bound to mature as the big guys enter the markets.
Institutional trading is the next phase that the crypto-space is about to enter. We are seeing a shift from a series of random events to calculated random events. This of course means more chaos. But if a careful study of the chart patterns ensues, huge profit-making opportunities abound.
And that is what some of the institutional investors on BitGo’s new platform want to achieve and exploit.
Check out our website for other cryptocurrency news.