Crypto financial firm Amber Group has agreed to a partnership with BitGo Trust, the custodial arm of the security-based Palo Alto firm, in new institutional services for its customers. The motive behind Amber's decision partly came from BitGo's $100 million in Lloyd's of London-funded cold-storage coverage. BitGo's chief of financial services, Nick Carmi, said in an interview: “The insurance that comes with our trust custody just adds another component of security and trust for the clients – and that’s why they are with us."
In response to the reasons behind the custody relationship extension, Amber Group CEO Michael Wu stated via email that, "it came down to the custodian’s “track record, shared insurance scheme and integration with (the BitGo) lending desk.”
Deep cold storage with several manual processes doesn’t meet the demand of fast turnaround professional trading operations. Carmi said that the inventory required for high-frequency trading and marketing can take place immediately in hot wallets. Wu couldn't provide any further comments on the exact split of assets that are present at any point in Amber's cold wallets.
Amber has also experienced BitGo's Wrapped Bitcoin (WBTC), an ease-of-use Bitcoin ( BTC) variant of the separate decentralized finance (DeFi) applications in Ethereum. Hi said that WBTC inevitably enters the corporate custody market as investors are looking for new custodial options.