On Jan. 16, BitGo has teamed up with Genesis Global Trading, one of the leaders in the cryptocurrency OTC trading, in order to tackle numerous security concerns in the cryptocurrency industry. It will give its users the possibility to buy or sell digital assets without even using a hot wallet, which would make BitGo a major rival to numerous cryptocurrency exchanges (including Gemini and Coinbase).
Luring in institutional investors
BitGo, which wants to allow customers to trade directly from its custody, could be a game-changer when it comes to making the crypto space more secure for institutional investors. BitGo Trust clients will be able to trade digital currencies without managing their private keys or transferring funds from the cold storage. The partnership with the SEC-regulated Genesis will kill two birds with one stone — tackling the liquidity problem and ensuring users’ safety.
It’s worth mentioning that the trading doesn’t incur any fees since Genesis will profit off the bid-ask spread. For the time being, BitGo will support six digital assets, including Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP).
BitGo CEO Mike Belshe claims that they are not going to stop there, bringing in as many liquidity providers as possible.
Another day, another hacking attack
Yesterday, the security breach reported by New Zealand-based cryptocurrency exchange Cryptopia served as a reality check for everyone who thought that large-scale hacking attacks had become a remnant of the past. According to JPMorgan, every third cryptocurrency exchange has been hacked. Meanwhile, U.Today earlier revealed even more chilling statistics: the total number of stolen funds in 2018 surpassed the $1 bln mark as of September.