Digital Asset Finance Firm BitGo Announces Off-Chain Clearance and Settlement Service

Published at: May 14, 2019

Digital asset finance firm BitGo announced the launch of its off-chain clearance and settlement service in a press release published on May 14.

Per the announcement, the service will be available to clients of qualified custodian BitGo Trust Company, and assets are not moved from custody while reportedly allowing fast, compliant and secure settlement. The company explains that — since the funds never leave the custodian’s wallet — this method eliminates counterparty risk:

“Until now, in a digital asset trade, one party needed to assume all of the risk and act on the counterparty’s good faith, and this doesn’t really work for institutional investors.”

Furthermore, BitGo highlights that this method does not require moving assets from cold storage, which has a positive impact on security. Lastly, the company notes that after the settlement is complete, the crypto assets are redeemable on-chain.

As Cointelegraph reported in April, BitGo has gained a further security certification from an external auditor after a review of its compliance.

In March, the United States Securities and Exchange Commission called for industry input as it is potentially reconsidering existing custody rules in specific cases of digital asset trading and settlement.

Tags
Related Posts
How wallet platforms are taking on exchanges
One of the biggest trends in recent months has seen Bitcoin flow out of exchanges into wallets. Generally, this is interpreted as a bullish sign — indicating that investors are optimistic about further growth in cryptocurrency prices. But delve deeper, and there’s more to this than meets the eye. The crypto industry has grown immeasurably over recent years — making stars out of a number of exchanges. Platforms such as Binance and Coinbase now handle billions of dollars in trading volumes every day. With this come concerns that centralization is creeping in — and fears that major exchanges are becoming …
Blockchain / March 4, 2021
Overview of Software Wallets, the Easy Way to Store Crypto
Similar to a bank account for fiat currency, a crypto wallet is a personal interface for a cryptocurrency network that provides reliable storage and enables transactions. Whether a cryptocurrency is securely stored or not, much depends on the wallet, which is only as secure as its private keys. Wallets are generally either hot or cold. The funds in a hot wallet can be spent at any time, online. A cold wallet functions in contrast: not intended for regular cryptocurrency transactions, but funds can be received at any time. Wallets can also be divided into three groups: software, hardware and paper. …
Blockchain / March 29, 2020
Crypto Custody Firm Ledger Vault to Provide Services to Crypto Broker Voyager Digital
Ledger Vault, the custody arm of hardware wallet manufacturer Ledger, will provide its services to Canadian cryptocurrency broker Voyager Digital, according to a press release shared with Cointelegraph on May 21. Per the release, Voyager Digital will integrate Ledger Vault’s multi-authorization cryptocurrency wallet management system into its trading platform with the aim to increase its overall cybersecurity. Voyager CEO Steve Ehrlich said that Ledger Vault ensures “security of our customer assets on the Voyager platform without compromising the speed and liquidity they’ve come to expect from Voyager. It's also a crucial step in our efforts to deliver crypto wallet transfers.” …
Bitcoin / May 21, 2019
Coinomi Wallet Addresses Vulnerability Concerns
Coinomi Wallet denied recent claims that its software sends wallet recovery seed phrases to Google’s remote spell checker servers in plain (unencrypted) text. The company refuted the claims in an official statement published on Feb. 27. In the statement, Coinomi claims that, unlike what was reported, the seed phrase transmission was encrypted via SSL (HTTPS), with Google being the only recipient capable of decrypting the message. Coinomi notes that the phrase was only transmitted if the user chose to restore his wallet and only on the desktop version. Finally, Coinomi states that the spell-check requests sent to Google were not …
Blockchain / Feb. 27, 2019
Trident Crypto Fund Data Breach: 266,000 Passwords Stolen
In a major privacy breach, the usernames and passwords of more than a quarter of a million Trident Crypto Fund customers have been stolen and published online. Technical director of cybersecurity firm DeviceLock Ashot Oganesyan told Russian news outlet IZ the database — which contains email addresses, cellphone numbers, encrypted passwords and IP addresses — had been uploaded to various file sharing websites on February 20. Earlier this week, hackers decrypted and published close to 120,000 of the passwords, potentially enabling them to log into affected users’ accounts and access their funds. 10,000 Russians affected Oganesyan said that while attacks …
Blockchain / March 6, 2020