Digital assets technology provider Finery Markets, has partnered with custodian BitGo to launch a solution providing regulated, qualified custody and automated settlement to the Finery network.
The firms say BitGo will secure assets in bankruptcy remote, qualified custody via BitGo Trust Company, and use Go Network, its settlement solution, to clear and settle trades on Finery’s non-custodial platform. They add this model eliminates the burden placed on liquidity providers and prime brokers today to manage settlements on their own and take on counterparty risk.
BitGo will also onboard other primes to serve as their own ‘Pool Masters’ and leverage Finery’s turnkey trading infrastructure along with BitGo Trust’s custody and Go Network’s risk-mitigating settlement solution. By offering a single platform to manage trading and settlement, BitGo and Finery say they have “significantly reduced” the operational burden that primes face today when onboarding with multiple OTC counterparties to access liquidity.
“We are incorporating best practices from traditional financial markets into the digital asset industry,” says Konstantin Shulga, CEO and co-founder of Finery Markets. “By separating the trading and settlement layers and enabling them to work together smoothly, we’re speeding up settlements, drastically reducing counterparty risk, and unlocking capital for more productive uses.”
Matt Ballensweig, managing director at BitGo, adds, “This partnership with Finery Markets attempts to harness the power of BitGo’s regulated custody and settlement platform, Go Network, to support crypto prime brokers that face operational friction in the current environment. To date, primes and OTC desks would need to bilaterally settle transactions daily with both their liquidity providers and their takers – now, they can offload that responsibility to BitGo Trust and focus on broadening connectivity and providing credit.”
The firms stress that the partnership ensures that custody and settlement responsibilities rest exclusively on BitGo as the regulated, qualified custodian. By being agnostic, any prime broker, OTC desk or exchange who wants to provide their clients with qualified custody services and automated settlement can now do so without having to manage settlement themselves.
Michael Rabkin, global head of business development at DV Chain says, “This partnership exemplifies the maturation of the digital asset space, mirroring concepts well-established in traditional finance. By integrating centrally cleared networks into global offerings, it helps reduce counterparty risks and enhance efficiency.”
