By the end of this month, BitGo Inc. plans to launch a new service to address a major concern relating to the security of assets, Bloomberg reports.
In partnership with Genesis Global Trading Inc., BitGo will offer its customers a service to buy or sell assets and hold them completely offline i.e. keep assets in the cold storage all the time.
The obvious aim is to address the issue concerning the security of assets as hacking has become the biggest problem in the crypto industry. The assets are held in cold storage while customers can execute transactions from cold storage without having to manage multiple keys.
BitGo is a security company focusing on delivering products and solutions based on the blockchain technology. It is one of the first companies that offered a multi-signature technology.
Genesis Global Trading, formerly known as SecondMarket, is the digital assets trading firm focusing on high net individuals and institutional investors.
According to Mike Belshe, the CEO of BitGo, the overarching goal is to “introduce market structure to crypto that’s never existed before”.
Around $1.1 billion worth of crypto assets were stolen in the first half of 2018 only, according to CNBC.
Thus, tackling hackers and their ability to steal crypto assets has become one of the hottest challenges amongst the crypto-security firms. Now, BitGo and Genesis Global Trading have raised the bar with the latest service.
“Hot wallets are online, so hackers can do whatever they do to get the coins,” adds Michael Moro, the CEO of Genesis. Accordingly, “to buy or sell in offline-mode means coins aren’t sent to exchanges”.
The obvious challenge in implementing the above-mentioned concept is the ability to store all assets in cold storage. To this end, BitGo is also looking for other partners to increase their capacities, although Moro insists that Genesis can match BitGo customer’s buy and sell orders accordingly.
“We will hook up as many liquidity sources as we can so our clients will have access to as much liquidity while staying in cold storage.”