Genesis expands tri-party solution through collaboration with BitGo to meet institutional client demand for segregation of duties between trading and custody
Genesis remains at the forefront of crypto derivatives by meeting needs of institutional clients increasingly looking to crypto firms to mitigate counterparty risk for clients
NEW YORK--(BUSINESS WIRE)--GGC International Limited (GGCI or "Genesis"), a leading digital asset trading firm, is proud to announce its collaboration with BitGo Trust, the leader in 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.
"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,” said 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."
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.
“Counterparty risk has always been top of mind for us, especially regarding crypto derivatives, and now more so than ever,” commented Daniel Slavin, Managing Partner at Chainview Capital and Genesis client. “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 industry leading 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.
“BitGo is excited to allow clients to combine Genesis’ trading capabilities with our ability to safeguard digital assets,” said Adam Sporn, BitGo’s Head of Prime Brokerage and U.S. Institutional Sales. “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 well established 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 best-in-class trading desk at Genesis, institutional clients now have a safer way to take advantage of market opportunities within the crypto derivatives space.
Genesis is a premier institutional digital assets financial services firm providing a single access point for select qualified individuals and global institutional investors. Genesis combines best-in-class client service, unrivaled operational excellence and a seamless user experience to provide investors with a full suite of services to manage their portfolios.
The firm offers sophisticated market participants an integrated platform to trade digital assets, creating pathways to benefit from market opportunities while increasing capital efficiency for counterparties.
For more information on Genesis, please visit genesistrading.com.
BitGo is the first digital asset company that has been focused exclusively on serving institutional clients since 2013. BitGo provides institutional investors with custody, liquidity, and security solutions. Active in both centralized and decentralized finance, BitGo offers market leading trading, lending, and borrowing services through its prime brokerage services and acts as the custodian for WBTC, the leading global stablecoin for Bitcoin.
In 2018, it launched BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets. In 2020, BitGo launched BitGo Prime, Portfolio and Tax, providing clients with a full-stack solution for digital assets. In 2022, BitGo launched institutional-grade DeFi, NFT and web3 services. BitGo processes approximately 20% of all global Bitcoin transactions, and supports over 500 coins and tokens. BitGo’s customer base includes the world’s largest cryptocurrency exchanges and institutional investors and spans more than 50 countries.
About Chainview Capital
Chainview Capital was founded by Dan Slavin in January 2018 as one of the first cryptofocused funds in the Boston area. Over the years, Chainview has become one of the leading funds in crypto and is known for pioneering directional options trading.
The information in this press release is not an offer to sell or solicitation of an offer to buy an interest in any investment or for the provision of any investment management or advisory services.
Genesis Global Trading, Inc., is a Delaware corporation, non-custodial, over the counter market-maker in digital assets and brokerage. It holds a Virtual Currency License with the New York State Department of Financial Services and is registered with FINRA and the U.S. Securities and Exchange Commission as a broker-dealer. GGC International Limited is incorporated in the British Virgin Islands. It carries out spot trading activity and enters into OTC derivatives.
BitGo Prime LLC and BitGo Trust Company, Inc. together with their affiliates, are independent third parties, not affiliated with Genesis. Any relationship that you enter into with them should be evaluated on that basis, including the risks, potential conflicts, and governing documentation. Genesis has no liability and takes no responsibility for third party performance or offerings and urges you to consult with independent, professional advisors, including legal, tax and financial.
The trading of digital currency as herein described is an inherently risky activity. Digital currency does not benefit from the protections afforded by the Securities Investor Protection Corporation. A counterparty’s ability to enter into derivatives with Genesis depends on satisfying a number of regulatory requirements imposed on derivatives under the Dodd–Frank Wall Street Reform and Consumer Protection Act and applicable law including but not limited to characterization as an eligible contract participant under the U.S. Commodity Exchange Act.
Important risk disclosures and terms of service can be found at https://genesistrading.com/legal.
FGS Global for Genesis: firstname.lastname@example.org
At BitGo: email@example.com
At Chainview: firstname.lastname@example.org