The security company blockchain of Palo Alto, BitGo, has developed a platform that will allow traders to buy and sell cryptocurrencies without having to extract them from the cold room.
A focus on security
Days after the cryptocurrency exchange Cryptography has been violated, the security firm of Palo Alto, BitGo, has announced that it has developed a platform that allows operators to buy and sell digital assets directly from the ColdGoor custody of BitGo.
BitGo closed a series B loan round in October 2018, bringing $ 58.5 million and attracting investors such as Galaxy Digital Ventures and Goldman Sachs from Novogratz.
BitGo will collaborate with the OTC SEC and FINRA trading platform regulated Genesis Global Trading to establish the necessary infrastructure, liquidity and compliance.
Genesis Trading will essentially match the purchase and sales orders of BitGo customers, according to platform CEO Michael Moro. Resources will never leave the cold room since Genesis has a cold wallet with BitGo.
Cryptocurrencies, which will initially be available through the new solution, include Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Ripple and ZCash.
The move is geared towards meeting custody requirements to attract institutional investors.
The need for custody
The need for an institutional custody solution has been highlighted several times and by more experts in the sector.
The same year Novogratz said that such a solution could push the next bull run.
"I think the next step requires custody from a trust source," he explained. "It will need a little more regulatory clarity. […] We would not bring out $ 10,000 without these two things because that's what institutional investors bring. But we will get there. "
Serious development in this regard would be Bakkt's deposit solution if he obtains pending regulatory approval. In addition to high physical security measures, Bakkt wants to allow pre-financed purchases and sales of future Bitcoins, substantially eliminating the risk of default.
At the same time, its clearing house will also have a dedicated guarantee fund, entirely funded by Bakkt, to cover the platform's positions.
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