Cryptocurrency custodianship is one of the newest innovations to come out of the cryptocurrency ecosystem, and the Bitstamp-BitGo partnership is leveraging the novelty to bring about the in-demand custodial services for digital assets.
The main advantage of having cryptocurrency custodianship is the security for a large number of cryptocurrency holdings, and the future of these much-needed solutions looks bright as prominent players are entering the market. One such entry that’s shaking up the nascent market is the world’s longest-running cryptocurrency exchange and Europe’s most significant trading platform, Bitstamp.
A partnership for cryptocurrency custodianship
On Oct 09, the cryptocurrency exchange giant announced its association with BitGo, a secure storage service for digital assets, to provide custodianship of digital assets. From Oct 10, the exchange will officially commence the movement of its assets to the BitGo wallets.
BitGo wallet will be further assorting Bitstamp’s possessions on a 100% cold storage technology in bank-grade Class III vaults that boasts of enhanced security because of its less exposure to online cyberattacks. The highly-sophisticated security cold storage technology is expected to further contribute to the advancements of cryptocurrency custody solutions.
A win-win partnership
Commenting on the partnership, David Osojnik of Bitstamp generously praised BitGo by stating that it is one of the most reliable partners who has closely worked with the company for a very long time now. The formal partnership is only an extension of the long-time association, he states.
Osojnik furthers that BitGo’s undivided attention towards bolstering the custodial services will go a long way in offering our clients a robust and regulated exchange platform. Moreover, their determination to meaningfully contribute to the further development of the cryptocurrency industry is laudable, Osojnik asserts.
Bitgo’s CEO, Mike Belshe, on the other hand, that Bitstamp has built an exemplary reputation over the years, and BitGo is determined to maintain it. And while extensive market analysis and charts only benefit exchange services to a point, what really matters is the security of digital asset holdings to instill customer trust. BitGo is thrilled to be partners with Bitstamp and earn their valued business, he confirms.