Genesis Trading in Collaboration with BitGo

GGC International, until recently Genesis Trading, says it has entered into a collaboration with digital asset custody provider BitGo “to continue delivering superior liquidity and execution services while reducing counterparty risk for its institutional clients”.

With no apparent irony, given its parent company Digital Currency Group remains engulfed in the issue (with plans to sell off Genesis Trading), the firm says, “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.”

Under the terms of the arrangement, BitGo Trust will offer qualified custody services and cold storage for assets held on behalf of Genesis’ institutional clients through its Custody Kit. Clients will also now have access to BitGo’s segregated collateral management solution, where they can hold collateral at BitGo Trust.

“Genesis and BitGo’s tri-party solution will allow market participants to mitigate counterparty risk while accessing Genesis’ robust liquidity, pricing, execution and market access services,” says Josh Barkhordar, head of Americas, sales at Genesis. “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.”

Daniel Slavin, managing partner at Genesis client Chainview Capital, adds, “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.”