#What is LINK and How Does it Benefit Institutional Clients?
LINK is a newly launched product from BitGo that serves as a unified interface for institutional clients. This platform enables users to manage and move digital assets from both BitGo custody and centralized exchanges through a single dashboard. By implementing this solution, BitGo aims to enhance the operational efficiency of institutions, providing an essential tool in a market still wary of the risks associated with past exchange failures.
#How is LINK Integrated into the Go Network?
Understanding LINK requires recognizing its role as a front-end layer on top of BitGo’s Go Network Off-Exchange Settlement infrastructure. This network allows institutions to allocate their custody assets for trading on various centralized exchanges without ever moving the assets outside BitGo Bank & Trust. The trades settle securely, employing a Delivery-vs-Payment mechanism that removes the trust necessary in traditional trading setups.
With connections to over ten centralized exchanges including well-known platforms such as OKX US and KuCoin, LINK simplifies the trading process. Institutions can now manage multiple positions across different exchanges concurrently, eliminating the need for logging into each platform and reconciling balances through cumbersome spreadsheets.
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#Why is Custody Separation Crucial for Institutions?
The critical lesson learned by the crypto industry after the FTX collapse in 2022 emphasizes the importance of separating custody from trading. During the crisis, vast sums of customer assets disappeared due to their direct presence on the exchange. BitGo’s model disrupts this risk by ensuring that assets remain safely in custody while only balance information is projected to exchanges for trading. This structural change effectively mitigates one of the most significant threats to institutional trading in the crypto space.
#How Does LINK Fit into the Broader BitGo Prime Ecosystem?
LINK works within the larger framework of BitGo Prime—a comprehensive platform designed for institutional clients. This suite of services combines trading, financing, collateral management, and settlement, offering a holistic approach to managing digital assets. Recent enhancements in the Global Liquidity Layer of Prime reinforce access to various trading venues.
Founded in 2013, BitGo has solidified its status as the leading independent digital asset custodian, processing a significant proportion of global Bitcoin transactions and providing crucial infrastructure for a wide array of institutional clients.