Digital asset and blockchain security firm BitGo has introduced its ready-for-launch off-chain Clearing and Settlement Service for its institutional clients of BitGo Trust Company.
According to a press release by the company, the service will offer its regulated BitGo Trust Company clients with the guarantee that assets will be securely held and not be left without custody when being transferred. This method will ensure a “fast, compliant and secure” service and reduce third-party participation risk: “Until now, in a digital asset trade, one party needed to assume all of the risks and act on the counterparty’s good faith, and this doesn’t really work for institutional investors.” – Mike Belshe, CEO of BitGo, noted.
With the new method, BitGo also guarantees that assets will be kept in cold storage at all times for the benefit of its clients. All the transferring process will be recorded. If there occurs a crypto asset withdraw action, the transaction will be reconciled on-chain.
Recently, BitGo has reportedly to announce the support for the Blockchain Capital’s BCAP security token, which allows its users to trade their tokens on the secondary trading platform.
As The Crypto Sight reported in March, the US Securities and Exchange Commission (SEC) has asked for comment about the current Custody Rules to further protect the investor benefits. The current custody rule only allows custodians to act on moving funds or securities for their clients on a delivery versus payment basis to reduce the cases where custodians misuse their investors’ assets for personal purposes.