What You Need to Know:
- KuCoin has launched a feature allowing institutional clients to conduct trades without needing to pre-fund their wallets.
- Assets for institutional clients will be securely stored with BitGo Singapore, utilizing a model that separates custody and execution to manage risks.
- This initiative aims to replicate familiar trading environments experienced in traditional finance (TradFi).
Crypto exchange KuCoin has rolled out the option for its institutional customers to trade without the requirement of pre-funding their wallets. This new approach seeks to provide a trading experience that aligns with traditional financial systems.
The Seychelles-based exchange has partnered with BitGo Singapore and will leverage the crypto custodian’s Go Network for off-exchange settlement. In a statement, KuCoin indicated that its entire range of products — including spot, margin, options, and perpetual futures — can now be accessed via the Go Network, ensuring that assets remain secure.
“As crypto firms look to capitalize on the increasing institutional adoption of crypto, they must introduce tools akin to those in TradFi. With assets remaining in BitGo Singapore’s custody, KuCoin adheres to a designed model that effectively mitigates risk,” they noted.
For some analysts, this offering closely resembles the defunct Exchange Network (SEN) from Silvergate Bank that facilitated fund transfers directly to exchanges. Notably, the SEN platform was discontinued in March 2023, shortly before the bank faced liquidation during a tumultuous period for cryptocurrencies, particularly following the collapse of FTX in the previous November.
