Liquid Custody: The Future of Institutional Crypto Trading

The INX Digital Company inc. | April 25, 2023
3 min read

The institutional adoption of digital assets is on the rise, and with it comes the need for reliable, secure, and compliant trading solutions. However, with traditional banking and crypto exchanges unable to provide the required level of liquidity and custody, institutions have been forced to choose between one or the other. That is, until now. Institutional crypto trading is about to receive a serious boost thanks to the emergence of liquid custody solutions. 

Secure Custody vs Liquidity: A Historical Tradeoff

For years, institutional investors have faced a tradeoff between liquidity and custody. While exchange liquidity has been easily accessible, it has often come at the cost of security, with exchanges being hacked or collapsing altogether, as was the case with FTX. On the other hand, custody solutions such as cold storage have provided a higher level of security, but have often resulted in illiquidity, as assets are locked away in storage. Institutions have therefore resorted to moving funds between their secure custodian wallets and exchanges in order to facilitate trading. 

But what if there was a solution that allowed institutions to enjoy the peace of mind associated with secure custody while giving them the ability to trade their digital assets freely?

The Solution: BitGo Go Network

Enter the BitGo Go Network, an all-in-one settlement network designed to enable institutions to safeguard, transact, and settle USD and digital assets across the BitGo ecosystem in real time. The Go Network offers real-time settlement of both USD and digital assets, eliminating the need for clients to wait hours or even days for funds to clear. It also provides bankruptcy-remote custody, with assets held in cold storage with BitGo Trust, a qualified custodian that’s SOC 1 Type 2 and SOC2 Type2 certified, providing a level of security that is unmatched within the industry.

The Go Network also offers an off-chain exchange settlement feature that enables clients to trade directly at partner exchanges with their assets secured in cold, insured, and qualified custody at BitGo Trust. By providing a secure solution to manage their assets across multiple trading venues, the Go Network creates capital and operational efficiency improvements for institutional investors.

INX Value Proposition

As a regulated trading venue for digital assets, INX is building institutional solutions for trading and investing. Our integration with the BitGo Go Network is a testament to our mission of building efficient, secure, and compliant solutions to meet the growing demands of institutions. By leveraging the Go Network, INX clients can now access on-exchange liquidity while keeping their assets secure in cold storage.

The Future of Institutional Crypto Trading

The integration of the BitGo Go Network and INX is not only a vast improvement over traditional banking and crypto exchanges, but it also represents a catalyst for the next institutional wave to enter the digital asset space. As more institutions recognize the need for both liquidity and secure custody, solutions like the Go Network will become the industry standard. With the Go Network, institutions can confidently trade digital assets without sacrificing security or liquidity.

By providing real-time settlement, secure custody, and on-exchange liquidity, the Go Network is the all-in-one solution that institutions have been waiting for. INX is proud to be a part of this revolutionary network, and we look forward to seeing the impact it will have on the digital asset industry.

The INX Digital Company inc. April 25, 2023

The INX Digital Company inc. is an expert in the field of finance, crypto and digital securities.


Most Popular

Navigating the Fog of Inflation

0 min read

Silvergate, Signature and SVB: What Their Collapse Reveals About The Nature of Banking

15 min read

Security Token Provider INX Cannot Relate to Coinbase’s SEC Woes

0 min read

Will Bitcoin Reach $1 million? An Intro to Hyperbitcoinization

4 min read