BitGo and Finery Markets Launch Crypto Trading and Off-Exchange Settlement Platform

The digital asset infrastructure service, Finery Markets, has developed a collaborative venture with BitGo, a secure custody service provider. This endeavor has given rise to a regulated and compliant custodial solution with the added capacity of automated settlement within the Finery ecosystem.

The partnership specifies that BitGo will handle the safeguarding of assets within BitGo Trust Company—offering bankruptcy remote, qualified custody—and utilize their Go Network for trade clearance and settlement on Finery’s non-custodial trading framework. The collaboration aims to offload settlement management and counterparty risk from liquidity providers and prime brokers.

Furthermore, BitGo plans to enroll other prime brokers as ‘Pool Masters,’ letting them utilize BitGo Trust’s custody services along with the Go Network’s risk-reducing settlement mechanism within Finery’s ready-to-use trade infrastructure. By consolidating trading and settlement management onto a single interface, BitGo and Finery Markets profess a notable decrease in the operational workload currently shouldered by primes while establishing tie-ups with several OTC counterparts for liquidity sourcing.

“Incorporating lessons from conventional finance markets into the digital asset space is our aim,” affirms Konstantin Shulga, CEO and Co-founder of Finery Markets. “Decoupling the trade from its settlement, yet ensuring their seamless operation together, achieves quicker settlements, significantly diminishes counterparty risk, and frees up capital for more productive avenues.”

“With this new association with Finery Markets, we’re looking to leverage BitGo’s regulated and dependable custody and settlement facility, the Go Network, to lighten the load for crypto prime brokers dealing with operational challenges,” remarks Matt Ballensweig, managing director at BitGo. “Primes and OTC desks historically had to manage bilateral settlements daily with their liquidity sources and their clients. Now, that responsibility can shift to BitGo Trust, enabling them to expand their network and deliver credit efficiently.”

The new strategic cooperation underlines the fact that BitGo will exclusively carry the custodial and settlement responsibilities, operating as the regulated and qualified entity. Any prime broker, OTC desk, or exchange desirous of offering their clientele qualified custody and automated settlement services may now do so without the need to direct settlements independently.

“This collaboration signals the evolving maturity of the digital asset market, borrowing doctrines from the bedrock of traditional finance,” comments Michael Rabkin, global head of business development at DV Chain. “By infusing centrally cleared networks with global offerings, it elevates operational efficiency and minimizes counterparty risk.”