On Wednesday, cryptocurrency custodial service Bitgo and over-the-counter (OTC) brokerage house Genesis Global announced a partnership to provide fast and secure trades directly from Genesis’ cold storage solution. Essentially, institutional investors who store their assets with Bitgo will be able to access cryptocurrency quotes in a high-frequency fashion similar to acquiring stocks or equities from traditional market makers.
Also Read: New Full Node Client ‘Bitcoin Verde’ Joins the BCH Ecosystem
Bitgo Partners With Genesis Global
Cryptocurrency custodial platform Bitgo is adding a new service for its institutional clientele. According to the company announcement on Jan. 16, the firm has partnered with OTC operation Genesis Global Trading by adding a seamless integration to its custodial program with the market maker’s cold storage reserves. Now Bitgo customers can buy and sell with Genesis directly for no additional fees and purchase assets such as bitcoin core (BTC), bitcoin cash (BCH), ethereum (ETH), litecoin (LTC), ripple (XRP), and zcash (ZEC).
The Genesis OTC and loan service was granted a Bitlicense in the state of New York last May and has continued to expand into 2019. More recently, Genesis Global released a financial report in October for 2018’s third quarter that shows the lender provided $553 million worth of crypto-infused loans. In the company’s press statements, Bitgo CEO Mike Belshe indicates that he thinks custodial clients will appreciate access to the digital asset liquidity Genesis provides. Further, the executive explained during the announcement that because Genesis is a regulated U.S. institution, this builds confidence among institutional investors and high net worth individuals.
“Some custodians are choosing to sacrifice security and safety by enabling fast withdrawals from cold-storage which makes their clients more susceptible to hacking, false instructions, and theft,” Belshe detailed. “Our partnership with Genesis, a FINRA and SEC regulated company, gives our clients access to liquidity through Genesis’ robust network of trading partners — And that solves the real problem which is the need to access liquidity – not the need to speed up withdrawals.”
Clients can sell large amounts of bitcoins from Bitgo’s cold storage wallet and get a quote from Genesis. They can also get a quote to purchase a significant sum of BCH, ZEC, BTC, ETH, XRP, and LTC from its deep liquidity pools.
Deep Liquidity for Institutional Clientele Interested in Cryptocurrencies
With the new partnership, Bitgo’s clients can maintain all their assets with the firm’s Bitgo Trust Company and get real-time pricing for buy and sell orders. Traders can access Genesis assets without having to manage private keys as everything is custodian purpose-built. Moreover, clients will find that Genesis has deep liquidity and the service provides same day settlement via the Bitgo Trust account. Bitgo originally launched its new custodial suite last year in May and was further granted regulatory approval to provide cryptocurrency storage services to U.S. investors last September. Genesis CEO Michael Moro explained that Bitgo will continue to be a long-term partner and he has “a lot of confidence in their institutional offerings.”
“We are an industry leader in digital currency trading and lending, and providing liquidity for companies like Bitgo is an important part of our value proposition,” the Genesis executive stated on Wednesday.
Services directed at institutional clients have flourished in recent months and custodial offerings and OTC desks were a major focal point in 2018. OTC desks like Cumberland Mining and Circle Trades have seen significant upticks in this area over the last six months. For instance, Circle told its investors that its over-the-counter operations swapped a notional volume of $24 billion last year. Other well-known companies such as Coinbase, Etoro, Blockchain, and Hodl Hodl all announced the launch of OTC desks and custodial solutions for institutional investors. Bitgo’s Trust solution and Genesis hope institutional investors and high net worth individuals will be enticed by “deep pools of liquidity” and Bitgo’s popular security solutions.
What do you think about the latest partnership between Bitgo and Genesis Global? Let us know what you think in the comments section below.
Image Credits: Shutterstock, Bitgo, and Genesis Global Trading.
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OTC crypto platform Genesis Global Trading has increased its annual trading volume by 50 percent and we’ve got the details in this edition of The Daily. We also feature an announcement by Bittrex which sought to calm traders who spotted 130,000 BTC being moved, and the launch of an offers bot by P2P exchange Hodl Hodl.
Also read: Critical Bug Found in Beam Wallet, Wirex Adds Another Cryptocurrency
Genesis Trading Reports 50% Increase in OTC Volume
Over-the-counter (OTC) digital asset platform Genesis Global Trading has recently reported a 50 percent year-over-year increase in its trading volume, despite the continuing bearish trend on the markets which started last year. In a correspondence to its customers, Genesis also noted that the total of crypto loans it gave to institutional clients has reached almost $1 billion in less than a year since the launch of its lending arm, Genesis Capital.
The company began giving loans in bitcoin core (BTC), bitcoin cash (BCH), ethereum (ETH), ripple (XRP), and other cryptocurrencies in March of last year. The entities that borrow the digital money, usually financial institutions such as hedge funds, use the assets to hedge investment positions and against dropping crypto prices.
Genesis Global Trading, which is part of crypto entrepreneur Barry Silbert’s Digital Currency Group, is registered with the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). In May 2018, the company was granted Bitlicense approval by the New York Department of Financial Services, which allows it to operate under the strict regulatory regime in the state.
Crypto Exchange Bittrex Expands Cold Storage
U.S.-based cryptocurrency trading platform Bittrex announced it’s reorganizing and expanding its cold storage. The exchange explained in a tweet that the process results in the moving of funds between its cold wallets. The company published the notice to reassure its customers, who’d observed 130,000 BTC being sent in a single transaction, they had nothing to worry about.
The crypto exchange, the 50th most popular by 24-hour trading volume, also made a couple of announcements regarding coins available for trading on its platform. Bittrex users can now trade paxos standard (PAX) with fiat money, after the stablecoin was recently added to its USD market.
Unfairly cheap.https://t.co/Cxj2GzVc3d pic.twitter.com/5vjd3jtC1a
— Antoine Le Calvez (@khannib) January 11, 2019
“On Jan. 17, we’re launching a US dollar (USD) market for digibyte (DGB). Eligible Bittrex accounts are auto enabled for USD trading,” the platform tweeted on Thursday. In both cases, users who want to deposit or withdraw U.S. dollars via wire transfers should submit an application in advance.
Hodl Hodl Introduces Offers Bot
Peer-to-per crypto exchange Hodl Hodl has introduced a new feature, in the form of an offers bot. From now on every offer created on the platform will be automatically posted on its Twitter account and Telegram channel, the digital asset trading platform said in a post on Medium. The list of offers will be refreshed every 30 minutes and their maximum number will be three. Private OTC offers will not be posted.
“In 2018 we created a separate Twitter account with the idea to connect cryptocurrency buyers and sellers to the latest and best offers at Hodl Hodl. We have operated this Twitter account manually up until now, and we decided to automate this process,” the developers explained this week. They have created a new Twitter account but the name remains the same – @offershodlhodl.
In the past months, Latvia-based Hodl Hodl has made a number of announcements about new features, including the introduction of non-custodial OTC trading and support for Russian ruble pairs with BTC and LTC. The exchange is also planning expansion in Asia and recently sealed a partnership agreement with Coins OTC, a company operating in the Asian over-the-counter sector.
What are your thoughts on today’s news tidbits? Tell us in the comments section.
Images courtesy of Shutterstock, Trading, Hodl Hodl.
At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.
Over the last 12 hours, cryptocurrency supporters across the globe have been celebrating the 10-year anniversary of the Bitcoin genesis block which was mined at approximately 18:15:05 UTC. Die-hard crypto enthusiasts believe the software released by the anonymous creator Satoshi Nakamoto has forever changed the way people look at money, and that the technology’s effect on the global economy will transform the course of history.
Also read: 2018’s Top Cryptocurrencies Ranked by Github Activity
10 Years of Dust Sent to the Genesis Block’s Wishing Well
On Halloween 2008, an anonymous developer named Satoshi Nakamoto announced a paper called Bitcoin: A Peer-to-Peer Electronic Cash System. Two months later, on Jan. 3, 2009, the network officially launched when Nakamoto mined block 0, bringing the Bitcoin blockchain into life. The genesis block is special for a few reasons as it has characteristics that the thousands of subsequent mined blocks do not. For instance, the genesis block is hardcoded into a great majority of software clients that use the chain for reference and for infrastructure.
Furthermore, at the time of creation, block rewards gave miners 50 BTC, but the genesis block is an unspendable sum that will forever contain those 50 coins. To this day nobody knows whether Satoshi made these coins unspendable for any specific reason. Over the years, many fans have also sent funds to the genesis address, and at the time of publication, there’s a total of 66.9 BTC sitting there. Scrolling through the list of dust transactions sent to the genesis address, one can find messages to Satoshi asking the creator for coins, as many of the senders hoped the creator would send additional funds back to them.
The original cover from The Times on Jan. 3, 2009.
Like the Beatles, Satoshi Left a Backward Message in Block 0
Another interesting fact about the genesis block is that many historians believe it was mined with a Windows-powered PC. Bitcoin version 0.1, the first original implementation, is written in the coding language C++ and was a Windows GUI application at first. This means the first block Satoshi mined was processed solely with a PC’s CPU. People mined BTC this way for two years after block 0 was created.
Satoshi’s message located in block 0.
The genesis block’s hash has two additional leading hex zeroes which are not seen in block creation today (except for the infamous 21e800 hash on June 19, 2018). The content of the ‘input’ in a generated bitcoin block contains what’s called a ‘coinbase parameter,’ which in the genesis block’s case is recognized as one of the most fascinating examples of hardcoded text stored inside the chain.
The coinbase parameter for block 0 states:
The Times 03/Jan/2009 Chancellor on brink of second bailout for banks
There are many theories to why Satoshi created this text, the prevailing one being that it was a philosophical message in response to 2008’s economic crisis and the subsequent bank bailouts. In addition to the coinbase parameter, when someone decrypts the hexadecimal format, the message also shows the “Chancellor bailout” text written backward. With Satoshi mining bitcoin with his CPU, it took six days to find block 1 on January 9 after the genesis block’s creation, and some people consider this day to be Bitcoin’s birthday as well. Some bitcoiners also assume Satoshi took a break in between mining blocks 0-1, in order for the timeline to represent the Bible’s Genesis story where God’s creation of the earth took seven days.
Hal Finney, Cryptographers, Internet Geeks, Anarchists, Tech Entrepreneurs, Venture Capitalists, and Grandma
Three days later, Satoshi sent the first transaction to the developer Hal Finney who decided to run the software and accepted 10 BTC from the creator. In fact, Finney was running the Bitcoin protocol on his computer the day after block 1 was mined on January 10 and tweeted about the software that day. However, even though Finney was the first known or identified bitcoin recipient, Satoshi sent coins to quite a few people on that same day. The creator also chose to send coins from block 9, as opposed to sending funds from blocks 1-8 for another unknown reason. On March 19, 2013, Finney explained how he got excited about the protocol after it was released by the anonymous inventor.
“When Satoshi announced the first release of the software, I grabbed it right away — I think I was the first person besides Satoshi to run bitcoin,” explained Finney’s recollection of the events. “I mined block 70-something, and I was the recipient of the first bitcoin transaction when Satoshi sent ten coins to me as a test — I carried on an email conversation with Satoshi over the next few days, mostly me reporting bugs and him fixing them,” the cryptographer added.
Seven days after the creation of the Genesis block, Hal Finney tweeted that he was running the Bitcoin software.
The creation of Bitcoin’s Genesis block and the beginning stages of the network slowly started to gather more supporters as time progressed. To this day, we don’t know what happened to Satoshi when the creator left the scene in 2010, by which point he is credited with having mined close to 1 million bitcoins. Since then, the establishment has scorned the technology year after year, while Bitcoin has steadily gained traction. Meanwhile, large swathes of geeks and political idealists started to believe the protocol would revolutionize the entire monetary system on a global level. For six years after block 0 was mined, the financial elites called cryptocurrencies crap before attempting to commercialize them in 2015.
Bitmex sponsored a thank you message to Satoshi for The Times’ January 3rd, 2019 front page. Included on the front page is the hash of Bitcoin block 554,509 in which Bitmain’s Jihan Wu and the mining pool BTC.com added the message “Thanks Satoshi” in the coinbase parameter.
Hard Money and the 21 Million Deliverable Pieces of Subjective Value
Satoshi’s software is more than just a fundamental breakthrough in computer science; the technology is also a peer-to-peer, open, secure, censorship-resistant, and the most deliverable type of money ever created. Since the creation of the genesis block 10 years ago today, the technological innovation has allowed for a pure form of voluntary free market exchange. Transactions between global individuals are conducted in a permissionless manner across hundreds of invisible borders without the need for any pre-existing trust. The innovation Satoshi gave to the world in 2008 is the current monetary system’s black swan, equipped with a positive feedback loop. Its ability to survive 10 turbulent and testing years is surely an event worth celebrating.
What do you think about the 10-year anniversary of the genesis block and Satoshi Nakamoto’s infamous creation? Let us know what you think about this subject in the comments section below.
Images via Shutterstock, The Times, Twitter, Brave the World, and Pixabay.
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Iceland-based hashpower hosting service Genesis Mining is compelling some of its customers to upgrade their Bitcoin (BTC) mining contracts following this year’s significant cryptocurrency price decline, according to an August 17 statement. In 60 days, the company will terminate services for open-ended contracts that mine less than the daily maintenance fee. Genesis claims that the downward trend of BTC around January and heavy decline in crypto mining in April and May resulted in a reduction of mining outputs. If customers wish to continue using Genesis’ services, they have to upgrade their existing BTC mining contracts to premium five-year contracts. Genesis notes in the announcement: “…as a hashpower hosting service, we can only influence one out of the three main factors that determine mining rewards, and that is the infrastructure… The market price of Bitcoin and the mining difficulty are factors we cannot control.” Genesis Mining was started in 2014, with locations in Bosnia and China. The company subsequently moved to Iceland and Canada due to the cold climate and cheap electricity rates. In March, Genesis was issued a cease and desist order and asked to leave the state of South Carolina due to selling “unlicensed securities.” South Carolina demanded Genesis not only halt operations within its borders, but pay an “appropriate civil penalty for the wrongdoing.” Since Bitcoin slid from it’s famed $20,000 peak last December, miners have struggled to stay above water as the combination of low prices and regulatory pressure continues to put a squeeze on the industry. In June, Canadian provincial utility Hydro-Quebec proposed new rules, under which blockchain companies will be required to bid for electricity and quantify the jobs and investment they expect to generate per megawatt. The new regime seeks to allocate up to 500 megawatts, in addition to 120 megawatts of already existing initiatives. window.fbAsyncInit = function() FB.init( appId : ‘1922752334671725’, xfbml : true, version : ‘v2.9’ ); FB.AppEvents.logPageView(); ; (function(d, s, id) var js, fjs = d.getElementsByTagName(s); if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = “//connect.facebook.net/en_US/sdk.js”; fjs.parentNode.insertBefore(js, fjs); (document, ‘script’, ‘facebook-jssdk’)); !function(f,b,e,v,n,t,s) if(f.fbq)return;n=f.fbq=function()n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments); if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′; n.queue=;t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e); s.parentNode.insertBefore(t,s)(window,document,’script’, ‘https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘1922752334671725’); fbq(‘track’, ‘PageView’);
Musicians have the resources to finance the things they support. Ordinary people try but often fail to have the required funding—which is why we tend to see celebrities investing in crypto and blockchain startups. The latest headline involving a celebrity moving into blockchain is as follows: Peter Gabriel invests in blockchain startup.
Peter Gabriel Invests in Blockchain Startup
You may remember Peter Gabriel as the former lead singer of Genesis, an English rock band formed in 1967.
Now, Gabriel, 68, is moving away from the music industry (so to speak) and into the blockchain …
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The license began to be criticized strongly. There are some companies that are almost unauthorized in part.