Cryptocurrency wallet provider BitGo is launching a new solution designed to bring big money sitting on the sidelines into the crypto market. By late January, institutional investors on BitGo will be able to trade coins that are locked away in cold storage.
Institutional investors who use the new service will be able to buy crypto with a more robust level of security, knowing that the coins they’re purchasing are completely disconnected from the internet and harder to steal.
BitGo CEO Mike Belshe told Bloomberg he wants to “introduce market structure to crypto that’s never existed before.” He says the ability to buy or sell in cold storage will allow customers to bypass exchanges, thus cutting the risk of theft, human error and breaches of compliance requirements.
Belshe says crypto is here to stay, and believes the amount of institutional money in the space “can easily go into trillions.”
The announcement comes in the wake of the first crypto exchange hack of the year. New Zealand exchange Cryptopia announced on January 15th that their exchange had experienced a security breach that resulted in “significant losses.”
Theft is a constant issue in the cryptocurrency world. A total of $864 million worth of crypto was stolen from major exchanges in 2018, more than double the amount of stolen funds reported in 2017.
BitGo is partnering with trading firm Genesis Global Trading Inc. to launch its new cold storage trading feature.
Cold storage trading is expected to launch by the end of the month.