KuCoin and BitGo Launch Off-Exchange Settlement Solution to Enhance Asset Security and Trading Efficiency

Dear KuCoin Users,

To further improve asset security and trading efficiency, KuCoin is pleased to announce a strategic partnership with BitGo Singapore, a global leader in digital asset custody services.

Together, we are launching an innovative Off-Exchange Settlement Solution (OES) that provides institutional users with both secure custody and seamless trading access while taking full advantage of KuCoin’s deep market liquidity and comprehensive trading products.

This solution allows users to securely store their assets while enjoying access to Spot and Futures markets for trading. By separating asset custody and trading functions, this partnership reduces risks and enhances operational flexibility for institutional investors.

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Off-Exchange Settlement Solution: Safeguarding Asset Security

Traditional cryptocurrency trading often requires users to deposit assets into an exchange, which can expose them to custody-related risks. The Off-Exchange Settlement Solution addresses this issue by outsourcing asset custody to BitGo. 

KuCoin institutional Client can set a special “Custodian Sub-Account” under the KuCoin main account and this “custodian sub-account” has a 1-on-1 asset delegation with the client's Bitgo account. Once credited, clients can freely trade on KuCoin with the "credited" funds while remaining assets in Bitgo. Clients may request withdrawal settled funds at any time. The settlement period is every 4 hours in automation. 

Key features of the solution include:

1. Secure Custody with BitGo: Users’ assets are stored in BitGo’s cold wallets, ensuring maximum security with offline private key protection.
2. Offline Authorization for Trading: Users can link their BitGo account to a one-to-one custodian sub-account under KuCoin, enabling secure asset authorization for trading.
3. Automated Settlement System: Settlements are automated every four hours, and users can withdraw settled funds at any time, offering a seamless and convenient process.

This model not only enhances asset security but also optimizes trading efficiency for institutional users.

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Key Benefits of the Partnership

This collaboration brings several significant advantages for institutional users:

1. Asset Security and Regulatory Compliance

Funds are safeguarded by BitGo Singapore, operating under regulation by the Monetary Authority of Singapore (MAS). BitGo’s cold wallet storage mechanism ensures all assets are segregated from the exchange, mitigating custody risks. Additionally, BitGo’s custody services are SOC 1 Type 2 and SOC 2 Type 2 compliant, setting the benchmark for security and transparency in the industry.

2. Seamless Market Access

Institutional users can access Spot and Futures markets directly with funds authorized offline, eliminating the need to pre-deposit assets on the exchange. This enables users to trade efficiently while leveraging KuCoin’s deep liquidity.

3. Competitive Rates and Premium Services

New institutional users will enjoy VIP12-level trading fees for 60 days, significantly reducing costs. Moreover, dedicated service teams will provide one-on-one support, ensuring a personalized and smooth user experience.

4. Efficient API Integration

API traders can access KuCoin’s free colocation service, enhancing trading speed and stability to meet the demands of high-frequency trading.

These benefits are further strengthened by BitGo Singapore’s cutting-edge custody services. BitGo allows users to allocate assets through one unified interface, eliminating the need for custom tools or processes while connecting to multiple exchanges. Additionally, all client assets remain registered under the client’s name and are insured up to $250M, ensuring maximum security and operational ease.

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Advancing Institutionalization in the Crypto Industry

This partnership marks a significant step in integrating exchange services with custody solutions, driving further institutionalization of the crypto industry. 

The Off-Exchange Settlement Solution not only enhances security and flexibility but also provides a safer and more efficient trading environment for institutional users. By mitigating custody risks, this solution sets a new standard for the cryptocurrency market and accelerates the entry of institutional funds.

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Experience the New Era of Secure Off-Exchange Trading

With the Off-Exchange Settlement Solution, users can enjoy the best of both worlds: the secure custody of their funds and seamless access to trading markets on KuCoin. 

Register now and experience this innovative service to take your asset management and trading to the next level with KuCoin!

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The KuCoin Team