The Liquidity Kit from BitGo gives you access to BitGo Prime, a BitGo Trust qualified client that provides you with deep and direct liquidity. Trading occurs directly from the safety of your insured Trust Custody account, utilizing multi-asset cold storage. The Liquidity Kit includes an order book that aggregates the order books of multiple major platforms, enabling you to easily take advantage of competitive prices from one convenient place.
Trade orders can be crypto-to-crypto or crypto-to-fiat and include: market, limit, and time-weighted average price (TWAP). You can then use the Trade WebSocket API to get real-time updates on order statuses and fills.
Best Price Execution and Capital Efficiency
The cryptocurrency market is fragmented and lacks national best bid and offer (NBBO), making it challenging to find the best prices at any given time. For many traders, the only way to efficiently execute is to invest time and capital by connecting and holding assets with multiple counterparties.
The Liquidity Kit from BitGo solves this challenge, enabling you to better execute with greater efficiency. BitGo serves as the sole counterparty and intermediary between a number of top exchanges and market makers. BitGo aggregates liquidity and displays the best price for a given trade, enabling you to take advantage of competitive prices from one convenient place.
The Liquidity Kit enables you to efficiently manage you capital, since you don't need to simultaneously maintain funds on multiple exchanges. You simply hold assets with BitGo, and BitGo routes orders to the liquidity providers offering the best price.
Elimination of Counterparty Risk
Beyond capital inefficiency, allocating funds across multiple exchanges exposes you to the risks of each counterparty. This includes both security, as well as potential conflicts of interest.
BitGo overcomes these risks by:
- Trading directly from your custodial wallets
- Operating under a riskless-principal model
- Submitting orders to liquidity providers on a non-disclosed basis
BitGo doesn't operate an exchange and therefore doesn't engage in any proprietary trading. Rather, all executions occur on behalf of clients, eliminating the possibility of counterparty front running or moving markets against you.