just now
▪️ The partnership between BitGo and Finery Markets ensures that custody and settlement responsibilities rest exclusively on BitGo as the regulated, qualified custodian
▪️ The BitGo/Finery Markets model is prime broker agnostic, meaning any prime broker, OTC desk or exchange who wants to provide their clients with qualified custody services and automated settlement can now easily do so without having to manage settlement themselves
▪️ ‘Pool Masters’ and liquidity providers can bilaterally trade and settle on a single, trusted platform, streamlining operations and greatly reducing counterparty risk
BitGo and Finery Markets have announced a partnership to launch what they claim is the first integrated cryptocurrency trading and off-exchange settlement solution. The collaboration aims to provide prime brokers, over-the-counter (OTC) desks, and exchanges with access to Finery Market's trading infrastructure, while BitGo handles custody and settlement responsibilities.
The new model is described as prime broker agnostic, allowing various financial entities to offer qualified custody services and automated settlement to their clients without managing the settlement process themselves. According to the companies, this arrangement is designed to streamline operations and reduce counterparty risk for 'Pool Masters' and liquidity providers.
Under this partnership, BitGo will secure assets through BitGo Trust Company, Inc., a regulated, qualified custodian. The company will utilize its Go Network for clearing and settling trades on Finery's non-custodial platform.
Konstantin Shulga, CEO and co-founder of Finery Markets, stated: "At the core of our partnership with BitGo is a commitment to innovation. We are incorporating best practices from traditional financial markets into the digital asset industry. By separating the trading and settlement layers and enabling them to work together smoothly, we're speeding up settlements, drastically reducing counterparty risk, and unlocking capital for more productive uses."
Matt Ballensweig, Managing Director at BitGo, commented on the operational benefits: "This partnership with Finery Markets attempts to harness the power of BitGo's regulated custody and settlement platform, Go Network, to support leading crypto prime brokers that face operational friction in the current environment. To date, primes and OTC desks would need to bilaterally settle transactions daily with both their liquidity providers and their takers - now, they can offload that responsibility to BitGo Trust and focus on broadening connectivity and providing credit."
The companies see that this partnership addresses challenges in OTC trading, such as operational inefficiencies and counterparty risk. They claim it will empower trading participants and potentially lead to broader digital asset adoption.
BitGo, founded in 2013, describes itself as an infrastructure provider of digital solutions for businesses, offering services including custody, wallets, staking, trading, and settlement. Finery Markets, launched in 2019, presents itself as a non-custodial crypto Electronic Communication Network (ECN) providing trading infrastructure for institutional players across various countries.
About BitGo
BitGo is the leading infrastructure provider of digital solutions for businesses, offering custody, wallets, staking, trading, and settlement. Founded in 2013, BitGo provides the security and operational backbone for more than 1,500 institutional clients in 50 countries, including many regulated entities and the world’s top cryptocurrency exchanges and platforms. BitGo secures approximately 20% of all on-chain Bitcoin transactions by value and supports more than 800 digital assets within its platform. BitGo Trust is fully regulated with $250M in insurance. Notable clients include large corporations and financial services companies like Nike and SoFi as well as leading bitcoin businesses and Web3 projects like Swan and Mysten. Post-bankruptcy FTX selected BitGo to provide custody for all creditor assets, and Hashdex chose BitGo as the custodian for its spot bitcoin ETF. In 2023, BitGo celebrated a decade in the industry and closed a $100 million Series C funding round at a $1.75 billion valuation.
About Finery Markets
Finery Markets, a premier non-custodial crypto ECN, provides cutting-edge trading infrastructure for institutional players in over 30 countries. We seamlessly connect clients across LATAM, North America, Europe, Asia, and Africa. Since our launch in 2019, we have been growing our ecosystem, serving 100+ digital asset players, including payment providers, brokers, OTC desks, hedge funds, and custodians. We connect digital asset players and provide them with seamless access to a vast network of partners, enabling them to navigate their operations smoothly and efficiently.Our goal is to power trading technology behind world's leading brokers, exchanges, OTC desks, payment providers and custodians via: providing institutional-grade crypto-native infrastructure with proprietary matching engine, enhancing execution quality & liquidity with access to global liquidity providers, minimizing counterparty risks with sophisticated risk management tools and improving capital efficiency with automated post-trade settlement workflow.
