BitGo is building a clearing & settlement service to address the most pressing crypto market structure issues.
As a qualified custodian, BitGo is uniquely positioned to deliver riskless, efficient, and compliant crypto trade clearing & settlement. Client assets remain secure and never leave cold storage. Trades are settled off chain via virtual journal swaps and synchronized on chain upon withdrawal.
Having onboarded and secured funds from OTC desks, exchanges, hedge funds, broker-dealers, lenders, payment processors, and security token issuers under the regulatory compliance and security of BitGo Trust, we have laid the groundwork for building a clearing and settlement network. Participants will be able to:
The clearing & settlement service is an API product complemented by a Web UI to provide integration flexibility.
One-sided request with counterparty affirmation One side of the trade submits clearing & settlement requests, including its own cryptographic signature on the trade details, via API calls. BitGo will notify the counterparty and lock the funds of both sides while waiting for the counterparty to affirm the clearing & settlement request via BitGo’s Web UI or API. The trade will be settled immediately upon affirmation and the lock will be released.
One-sided request with instant settlement One side of the trade submits clearing & settlement requests, including cryptographic signatures of both sides of the trade, via API calls. The trade will be settled instantaneously.
Two-sided requests with reconciliation Both sides of the trade submit clearing & settlement requests via API calls, each providing their own cryptographic signature. BitGo will reconcile trades and settle immediately upon successful reconciliation.