Finery Markets partners with BitGo

The collaboration aims to integrate regulated qualified custody and automated settlement solutions into Finery Markets' trading network.

Under the partnership, BitGo will utilise its subsidiary BitGo Trust Company to provide secure custody of assets in a qualified and bankruptcy-remote manner. Additionally, BitGo's Go Network, a settlement platform known for its industry-leading capabilities, will handle the clearing and settlement of trades on Finery's non-custodial platform. This approach is designed to streamline operations, reduce counterparty risks, and alleviate the settlement burdens typically faced by liquidity providers and prime brokers.

BitGo plans to onboard various prime brokers as 'Pool Masters' who will leverage Finery's trading infrastructure alongside BitGo Trust's custody services and Go Network's settlement solutions. This consolidated platform aims to simplify trading and settlement processes, enhancing operational efficiency and freeing up capital for more productive uses.

The partnership's focus on innovation and the integration of traditional financial market practices into digital assets. This includes separating trading and settlement layers to accelerate settlement times and mitigate risks associated with counterparty engagements.

Therefore, the partnership's goal is to support crypto prime brokers by minimising operational friction through regulated custody and settlement capabilities. This shift allows primes and OTC desks to offload daily settlement responsibilities and concentrate on expanding connectivity and credit provision. Moreover, by integrating centrally cleared networks, the collaboration aims to enhance efficiency and reduce counterparty risks, thus bolstering institutional confidence in the space.

The partnership between BitGo and Finery Markets represents a significant development in OTC trading, addressing critical challenges such as operational inefficiencies and counterparty risks. This initiative is expected to empower trading participants, enhance market confidence, and facilitate broader adoption of digital assets across global markets.

Market challenges

The partnership between BitGo and Finery Markets targets key challenges in the digital asset trading ecosystem. One critical issue is fragmented liquidity across multiple exchanges and platforms, which often leads to inefficiencies and price disparities. By integrating BitGo's custody solutions and settlement platform with Finery Markets' trading infrastructure, the collaboration aims to consolidate liquidity sources. This integration facilitates seamless access to deeper liquidity pools, improving price discovery and trade execution efficiency for institutional clients.

Another challenge addressed is the operational complexity of settlement processes in digital asset markets. These processes can be manual, error-prone, and susceptible to delays, undermining transaction speed and reliability. BitGo's Go Network settlement solution automates and accelerates settlements, leveraging blockchain technology to ensure secure and transparent transactions. This enhancement not only reduces operational risks but also enhances overall transaction efficiency, aligning with institutional standards for reliability and compliance. Together, BitGo and Finery Markets aim to set new benchmarks in security, efficiency, and liquidity management, bolstering confidence and advancing the maturity of digital asset trading globally.