BitGo cryptocurrency exchange announced recently that it has allowed its customers to trade the crypto held in their BitGo custody account without having to move it against an exchange. Genesis Trading, as part of the deal, will execute trades on behalf of BitGo for its clients. BitGo clients will not have to open Genesis accounts to use the service.
Genesis Trading CEO Michael Moro stated that with The Block that the new provider it is is novel in as much as it lets users trade their cryptocurrency without having to move their coins from offline to online which he says is more protected.
“BitGo clients, traditionally, would have to put the coins onto the exchange,” Moro said.
“Genesis provides the quote, BitGo turns around and they can effectively segregate the coins and then send it to Genesis and since we have a wallet at BitGo they are never leaving their systems.”
The collaboration with this new exchange Genesis Global Trading will let BitGo customers trade their digital assets without having to move them from the custody service to a crypto exchange. Under the corporation, Genesis will perform the skills without the help of BitGo’s customers to start a new account.
BitGo’s customers will have an entry to the service without any charges. Genesis Global Trading will make money by pocketing the bid-offer spread or the difference between the buy and sell rates. According to cryptocurrency intelligence firm CipherTrace’s Q3 Cryptocurrency Anti-Money Laundering report, as of quarter-three, 2018, cryptocurrency thefts had already reached $927 million. The blockchain cybersecurity specialists had previously recognized hacks and theft at platform layers and exchanges to be a main problematic, developing moreits Q2 findings. Blockchain security firm CipherTrace recently reported that $731 million worth of cryptocurrencies were stolen from crypto exchanges during the first half of 2018.
Coincheck CEO Koichiro Wada said in an interview with Bloomberg:
“We were aware we didn’t have enough people working on internal checks, management, and system risk. We strived to expand using headhunters and agencies, but ended up in this situation.”
Indeed, the Genesis announcement follows a similar partnership unveiled late last year between BitGo’s rival custodian Kingdom Trust and trading firm OTCXN.
“The OTCXN platform is essentially a private blockchain where people go to make trades,” said Matt Jennings, CEO of Kingdom Trust (using the term “blockchain” figuratively). “We verify through that platform that the assets exist here, so you have a regulated entity verifying the assets are in cold storage.”