Share this article
BitGo Offers Institutional Clients New Off-Chain Settlement System
BitGo is launching a new clearing and settlement service, allowing off-chain transactions between clients so assets never leave custody.
By Nikhilesh De
Updated Sep 13, 2021, 9:11 a.m. Published May 14, 2019, 2:05 p.m.
Crypto custody provider BitGo is launching a new clearing and settlement service for its institutional clients.
BitGo's new clearing and settlement service will be provided to its regulated BitGo Trust Company clients, and will ensure that assets never leave custody when being transferred, while the actual settlement is "fast, compliant and secure," according to a press release. During a trade, BitGo will act as the custodian on either side, which the company claims will reduce counterparty risk.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
In addition to counterparty risk, BitGo says its new offering will reduce security risks, prevent accidental compliance infringement and allow investors to more efficiently allocate their capital.
Under its new program, a transfer between two different companies will be recorded, but the assets being traded will remain in cold storage at all times. Trades would be settled off-chain, with transactions being reconciled with the relevant blockchain upon withdrawal.
Mike Belshe, BitGo's chief executive, said in a statement that the new product is aimed at institutional investors.
In addition to counterparty risk, institutional investors at present face issues with having to store assets on multiple exchanges prior to conducting trades and settling transactions outside cold storage.
"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," Belshe said, adding:
"We are bringing to market a risk-less, efficient, and compliant digital asset clearing and settlement, and what makes this service possible is BitGo Trust’s strong client base."
As such, BitGo is hoping to draw in over-the-counter trading desks, single-dealer platforms, exchanges, asset managers and broker-dealers. To take advantage of the new service, all participants in a transaction would need to custody their assets with BitGo.
"As a result of using a common custodian, participants will be able to choose which partners to clear and settle with, and check their trading limits pre-trade," the company said.
Mike Belshe, CEO of BitGo, at Consensus: Invest in 2018
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Japan’s Higher Rates Puts Bitcoin in the Crosshairs of a Yen Carry Unwind
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten liquidity conditions that recently helped bitcoin rebound from November’s lows.
What to know:
- The Bank of Japan is expected to raise interest rates to 0.75% at its December meeting, the highest since 1995, affecting global markets including cryptocurrencies.
- A stronger yen could lead to de-risking in macro portfolios, impacting liquidity conditions that have supported bitcoin's recent recovery.
- Governor Kazuo Ueda indicated a high probability of a rate hike, with officials prepared for further tightening if their economic outlook supports it.
Top Stories
