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

Quantitative Bitcoin Analyst PlanB Explains Why His Identity Remains a Secret

Michael LaVere
  • Quantitative crypto analyst PlanB keeps his identity a secret to avoid interfering with his employment at an institutional investor.
  • PlanB gained prominence for being the first analyst to apply the stock-to-flow (S2F) model to bitcoin. 

The anonymous crypto analyst PlanB has revealed why he keeps his identity a mystery. 

PlanB, who gained prominence on Twitter and Medium for being the first analyst to apply the stock-to-flow (S2F) model to bitcoin, said he keeps his true identity a secret in order to avoid interfering with his day job. 

Speaking in an interview with In Gold We Trust, the quantitative analyst said, 

I am both an analyst and investor at an investment office of a large institutional investor in the Netherlands. As a team we invest USD 50+ billion AUM. My main focus is on mortgages, loans, and structured finance. I do not want my employer to have any negative consequences from my Bitcoin ‘hobby’. Also, I consider it good operational security to remain anonymous.

PlanB continued, explaining he has no interest in becoming a public figure and does not intend to reveal his identity any time soon. 

He also refuted several criticisms against the application of stock-to-flow to bitcoin, which evaluates the injection of new BTC into the market relative to the total circulating supply. 

He said, 

People that use the demand argument probably don’t have a statistics or investing background. The argument is theoretically right (price is a function of supply and demand) but there are a lot of famous pricing models that do not use demand – or supply – as input and still give good predictions.

PlanB said strict adherence to the overall demand for bitcoin, which does not apply in S2F, is an argument based on “ignorance.”

Featured Image Credit: Photo via Pixabay.com