Cryptocurrency custodian, BitGo, launches a prime brokerage service for institutional investors. According to the CEO of BitGo, Mike Belshe, speaking on the launch this Wednesday, the service will offer institutions the best trading prices across four of the top 10 exchanges.
BitGo Launches Prime BitGo Prime
BitGo, announced the launch of the BitGo Prime services to institutional investors with at least $1 million in their accounts. This follows the recent launch of crypto lending services for institutions in March adding to it trading and custodial services.
Institutions interested in crypto trading will need to store their funds with centralized exchanges to effectively trade. This process increases the risk on the funds as well as increases the transaction fees and time in order to find the best exchange to trade on.
BitGo Prime aims at solving this problem by directly connecting to 4 of the top 10 crypto exchanges allowing institutions to directly trade on the best market prices. Moreover, institutional investors will be able to directly trade from their cold wallet storage ensuring the security of their funds.
Belshe also said that the privacy of investors will be the exchange’s paramount duty to prevent abuse of knowledge on when a big investor wants to make a purchase. The investors will still undergo full KYC/AML compliance in line with the U.S. regulated crypto custodial guidelines.
The high quality of services BitGo Prime users however will not come cheap. Belche said,
“If you don't have an account balance of a million dollars or more, you probably wouldn't come to us, and even a million dollars is kind of on the low end.”
A New Dawn for Institutional Investors
The new entity will be led by current head of financial services at BitGo, and CEO of BitGo Prime, Nick Carmi. Speaking on the launch of the new service, Carmi said,
“BitGo Prime delivers a new level of control over cryptocurrency trading by aggregating liquidity from multiple counterparties, optimizing order flow and executions directly from the investors' custodial wallets.”
Following the acquisition of Lumina, a tax software company, in April, BitGo investors will enjoy a one stop shop on the platform leveraging tax reporting and portfolio tools of the latter. Institutional investors in BitGo Prime are also covered in a $100 million insurance fund launched in March in the exchange losses users’ funds or bankruptcy.