Digital asset trading firm Genesis will offer triparty collateral management to its institutional clients through a collaboration with digital asset custody specialist BitGo Trust.
Through this arrangement, BitGo will deliver qualified custody services and cold storage for assets held in safekeeping for GGC International’s (or Genesis’) institutional clients. The aim is to combine the security and asset safety offered by BitGo’s triparty solution with Genesis’ liquidity pool and trading desk capability.
This will give Genesis’ institutional customers access to BitGo Segregated Collateral Management service, enabling them to hold collateral at BitGo Trust. The solution provides daily mark-to-market of collateral value to both parties and a designated approval process for either party to withdraw variation margin and collateral from the triparty account.
Josh Barkhordar, Genesis head of sales for the Americas, says: "Genesis and BitGo's triparty solution will allow market participants to mitigate counterparty risk while accessing Genesis' robust liquidity, best-in-class pricing, execution and market access services.
“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."
Adam Sporn, BitGo’s head of prime brokerage and US institutional sales, says: “BitGo is excited to allow clients to combine Genesis’ trading capabilities with our ability to safeguard digital assets.
“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.”
Daniel Slavin, managing partner at Chainview Capital and a Genesis customer, says: “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.”
