BitGo, the California-based digital wallet company, is to expand its relationship with Bitstamp by providing custodial services to Bitstamp, Europe's oldest and largest cryptocurrency exchange by trading volumes.
Bitstamp announced that it would start transferring assets to BitGo's wallets on Thursday, October 10, and that customers would not be affected and need take no action. The companies declined, however, to disclose the value and types of digital assets to be held under the custodial service. The statement continued:
The security of our customers’ funds is always our highest priority at Bitstamp. With BitGo Custody, Bitstamp’s assets will be secured on 100% cold storage technology in bank-grade class III vaults and protected by BitGo’s $100 million insurance policy.
Indeed, BitGo is insured through Lloyd's of London and the policy covers against theft or the loss of cryptographic keys.
The two companies already have a working relationship as Bitstamp has used BitGo's hot wallet for several years. David Osojnik, Bitstamp's chief technical officer, said that BitGo has been one of its "most trusted partners for many years" and that the move is a "natural extesion" of their relationship.
Per his words, BitGo's "exclusive focus on institutional services has allowed them to develop the tech and processes necessary for running a robust and compliant cryptocurrency exchange."
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