BitGo Clients Can Now Buy and Sell Crypto Directly From Cold Storage

On Wednesday (January 16th), crypto custody solution provider BitGo, announced a partnership with Genesis Global Trading ("Genesis"), a wholly-owned subsidiary of Barry Silbert's Digital Currency Group (DCG) and one of the largest over-the-counter (OTC) cryptocurrency dealers, to allow its clients to trade cryptoassets directly from BitGo custody (cold storage).

BitGo says that via "a seamless integration", its clients will be able to "easily execute buy and sell orders without having to manage keys or move their assets from the industry's most secure cold storage," and wishes to assure them that there are "no additional fees for this service."

BitGo clients will be able to:

  • "Maintain assets in custody with BitGo Trust Company, the first qualified custodian purpose-built for digital assets"
  • "Get online, real-time pricing for buy and sell orders"
  • "Easily execute transactions from cold storage without having to manage keys"
  • "Access Genesis’ deep liquidity through a robust network of trading partners with same day settlement directly through a BitGo Trust account"
  • "Trade a variety of currencies including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Zcash (ZEC)"

According to a report in Bloomberg, this new service, which will be available by the end of this month, means that BitGo's clients "will be able to buy or sell Bitcoin, Ether and other digital assets without the coins ever leaving cold storage -- in other words, they’ll stay on devices not connected to the internet, making them harder to steal."

Bloomberg was told that BitGo wishes to "introduce market structure to crypto that’s never existed before," before adding that being able to trade in "offline-mode" (i.e. directly from cold storage) eliminates the need to send coins to exchanges, which reduces the risk of "theft, human error or running afoul of compliance requirements."

Mike Belshe, the CEO of BitGo, said:

“Some custodians are choosing to sacrifice security and safety by enabling fast withdrawals from cold-storage which makes their clients more susceptible to hacking, false instructions, and theft. Our partnership with Genesis, a FINRA and SEC regulated company, gives our clients access to liquidity through Genesis’ robust network of trading partners. And that solves the real problem which is the need to access liquidity - not the need to speed up withdrawals.”

As for Michael Moro, the CEO of genesis, he had this to say about this new partnership:

“BitGo has been a terrific, long-term partner to Genesis and we have a lot of confidence in their institutional offerings. We are an industry leader in digital currency trading and lending, and providing liquidity for companies like BitGo is an important part of our value proposition.”

Interestingly, the Bloomberg report also mentions that the BitGo CEO told them that, in the future, BitGo will allow this kind of trading not only with the help of Genesis:

“We will hook up as many liquidity sources as we can so our clients will have access to as much liquidity while staying in cold storage."


Featured Image Courtesy of BitGo

New Wirex Visa Card Offers Users Cryptocurrency Rewards

A new Visa card launched by borderless payment platform Wirex rewards users with 1.5% back in bitcoin on all in-store purchases, allowing users to earn crypto rewards for using it.

According to a press release shared with CryptoGlobe, Wirex announced its new Visa Travelcard at the Singapore FinTech Festival. The card supports more than 150 currencies and processes cryptocurrency exchanges to fiat currency before transacting on the visa network.

It’s reportedly supported anywhere Visa is accepted and allows for free ATM withdrawals. Wirex touts its “first in the world” program allowing users to earn cashback in cryptocurrency. Per the firm the first 2,000 to order and activate a Wirex Travelcard will receive 20 Nano.

To get users onboard Wirex is removing management and traditional currency exchange fees for a limited period. The card is set to be available across the Asia-Pacific region. The firm’s CEO Pavel Matveev was quoted as saying it “witnessed an explosion in demand for hybrid fiat and crypto-enabled banking alternatives in APAC, where people need payments redesigned for the future.”

Wirex is one of the only cryptocurrency-related companies in the world to have been granted a UK FCA e-money license. Earlier this year it launched the WXT token on OK Jumpstart, OKEx’s IEO platform.

The firm’s announcement added it’ll soon release a “revolutionary selection of fiat-backed stablecoins.” Wirex is one of various fintech firms entering the crypto space. Revolut, for example, added stop orders for trading BTC, ETH, and BCH and others earlier this year.

Featured image by Nathan Dumlao on Unsplash.