LGO Markets, a digital asset trading platform for institutional investors, has announced that BitGo will be their official partner to offer custodian services for their clients on April 8, 2019.
2019 is shaping up to be the year that cryptocurrency and the mainstream financial world have their long-awaited partnership. The first signs of this were JP Morgan announcing their own cryptocurrency to be launched this year and Facebook finally taking steps towards future blockchain ventures.
As more institutional money flows into crypto, there is a new emerging market for services to cater to the new investors. In view of this, LGO Markets has announced a partnership with BitGo on April 8, 2019.
The partnership will see BitGo act as a custody and multi-signature wallet provider for LGO Market’s new clientele.
Custodians of a New Market
LGO Markets is a freshly launched marketplace that offers digital asset trading for institutional investors. As such, BitGo will be providing services for a clientele that includes hedge funds, family offices, and asset managers.
These investors will be able to custody their assets with the BitGo Trust Company which is regulated by the South Dakota Division of Banking. Because crypto is so new and this level of outside investment hasn’t been seen before, there is great emphasis on the safeguarding of assets, something that BitGo has stated that they are committed to.
Interestingly enough, Hugo Renaudin, the CEO of LGO Markets, said in the press release that both companies agree that there is the need to segregate the duties of execution of trades and custody of funds for institutional investors.
Mike Belshe, the CEO of BitGo agreed with this, saying that the separation of duties was important for all parties involved, he said:
“Our vision is aligned as both companies believe strongly in decentralized cryptocurrency markets where exchanges do not act as their own custodians, and where institutional investors can trade, manage, and store their digital assets without sacrificing security,”
This comment is likely in reference to the hacks that have taken place at various crypto exchanges in the last few months and the negative image that they give the industry. By separating the two, investors are given some assurance that their funds are in safe hands.
With a partnership like this, it is not unlikely that digital asset trading platforms that cater to big investors will offer outsourced custodian services as not just an extra perk to investors, but as the norm.
After all, even everyday crypto users have been warned not to store their crypto in the same place where they trade.