GGC International Limited (Genesis), a digital asset trading firm, is proud to announce its collaboration with BitGo Trust, a key player focused on digital asset custody, to provide a tri-party solution for its institutional clients.
This joint effort will “allow Genesis to continue delivering superior liquidity and execution services while reducing counterparty risk for its institutional clients.”
Josh Barkhordar, Head of Americas, Sales at Genesis, said:
“Genesis and BitGo’s tri-party solution will allow market participants to mitigate counterparty risk while accessing Genesis’ robust liquidity, best-in-class pricing, execution and market access services. We foresee collateral management and counterparty risk mitigation increasingly becoming the standard operating framework for institutional clients in the digital asset market. This new collaboration with BitGo will allow Genesis to remain at the forefront of the industry as clients seek to manage risk with a regulated, qualified custodian.”
As recent events have damaged trust and shifted focus to managing counterparty risk, this collaboration meets the growing institutional demand for a custodial tri-party solution.”
Daniel Slavin, Managing Partner at Chainview Capital and Genesis client, said:
“Counterparty risk has always been top of mind for us, especially regarding crypto derivatives, and now more so than ever. Genesis and BitGo have responded to an obvious need by offering one of the first easy-access opportunities for market participants to express their views with a bespoke crypto derivatives solution that meaningfully reduces credit and custody risk for both sides of the trade while maintaining the same operational simplicity we need to manage capital. We are excited about the advantages and efficiencies this affords us. We hope this will pave the way for a new industry standard and applaud Genesis and BitGo for leading the way.”
Under the terms of this arrangement, BitGo Trust will “offer qualified custody services and cold storage for assets held on behalf of Genesis’ institutional clients through their Custody Kit.”
The collaboration of these two firms will “combine the security from BitGo’s tri-party solution with access to Genesis’ deep liquidity and seasoned trading desk.”
Clients will now “have access to BitGo’s Segregated Collateral Management solution, where they can hold collateral at BitGo Trust, an entity with a $250m insurance policy and SOC 1 Type 2 and SOC 2 Type 2 certifications.”
BitGo includes ongoing monitoring “for collateral sufficiency, daily mark-to-market reporting of collateral value to both parties and a designated approval process for either party to withdraw variation margin and collateral from the tri-party account.”
Adam Sporn, BitGo’s Head of Prime Brokerage and U.S. Institutional Sales, said:
“BitGo is excited to allow clients to combine Genesis’ trading capabilities with our ability to safeguard digital assets. Tri-party has been integral in traditional finance for many years and with the increased focus on qualified custody we believe our collateral management partnership with Genesis will allow clients to safely scale their trading strategies.”
This collaboration between two industry participants “provides institutional investors working with Genesis a comprehensive suite of tools designed to manage their exposure in volatile cryptocurrency markets.”
By combining regulated custodial solutions from BitGo with the trading desk at Genesis, institutional clients now “have a safer way to take advantage of market opportunities within the crypto derivatives space.”