Bitcoin SEF Partners with BitGo for Custody Services

Swap execution facility (SEF) TeraExchange has joined with BitGo, a bitcoin security platform, to provide custodial services for USD/Bitcoin derivatives executed on its platform.

The partnership will see TeraExchange combine its institutional trading platform with BitGo’s multi-sig security technology to allow deposited bitcoin to be used as collateral.

This approach establishes auditable bitcoin collateral, creating a complete electronic trading lifecycle for bitcoin derivatives trading.

“The relationship with BitGo fills in the missing piece of the Bitcoin derivatives trading workflow. Participants can now trade with the confidence of knowing that the required collateral is in place which serves to create a safe and sound marketplace,” says Leonard Nuara, president and co-founder of TeraExchange.

TeraExchange launched the first bitcoin derivative platform in September this year, and saw its first lot of swaps trades in October.