Crypto services provider BitGo announced Wednesday the launch of BitGo Prime, an institutional-focused trading service.
BitGo Prime will be led by Nick Carmi, who has been named the entity’s chief executive. Carmi joined BitGo just over a year ago as its head of financial services, having joined from Tower Research Capital. He previously held roles across the banking world, including at Deutsche Bank, Barclays and Lehman Brothers, among others.
“Our challenge was to build an innovative, sustainable trading and lending business that bridges the complex world of technology with the demands of the traditional financial markets,” Carmi said in a statement. “BitGo Prime delivers a new level of control over cryptocurrency trading by aggregating liquidity from multiple counterparties, optimizing order flow and executions directly from the investors’ custodial wallets.”
A growing number of companies are vying to become prime brokers for digital assets. Prime brokers exist as go-betweens for institutions that operate in the market, enabling them to trade across different venues in pursuit of the best possible price. Such entities offer a wide range of services, also spanning lending, capital introduction, and custody services.
Such a race is “in full swing,” as The Block’s Ryan Todd wrote in a column last week. The acquisition of custodian Vo1t added digital asset trader and lender Genesis to the list of contenders, which already included the likes of BitGo as well as Tagomi and FalconX. On Wednesday, Coinbase announced its acquisition of Tagomi.
“We need a healthy financial system,” BitGo CEO Mike Belshe said in a phone interview with The Block. “All of us are working to create a market structure that makes sense and clients are going to need services from multiple parties.”