Binary Financial Partners With BitGo For BTC-01, Bitcoin Liquidity Concierge Service

Journalist:
Scott Fargo @TalonTech1
October 6, 2014

Binary Financial a digital asset investment company, has chosen BitGo to provide the transfer and security of its clients’ holdings without ever possessing the private keys that bestow final ownership.

BitGo is leveraging its state of the art security for both small and enterprise users to gain more clients in the Bitcoin and Cryptocurrency world. The deal announced today with Binary Financial is another show of that dedication to security on all levels and a smart business acumen.

Will O’Brien: “Binary Financial (Jonathan Teo and Harry Yeh’s $125 million fund) is launching a “concierge” Bitcoin purchasing service. Many wealth managers are recommending 5% or more Bitcoin for high net worth portfolios – but personally buying and storing multi-millions worth of Bitcoin can be daunting. Some investment banks have told us of turning down 15 large purchase requests just last year because the logistics remain too burdensome. Of course, such a service would not be possible without BitGo’s trustless multi-sig technology.”

We are now seeing more and more large investors looking at Bitcoin as more than just a currency but also as a key part of investment strategies. A large part of securing large investments is security, and BitGo provides this in a trustless way where the owner does not have to give up their keys and yet is also secure and easy to use. The barrier of new investment is the difficulty in setting up securing of Bitcoins. BitGo will make this easier for Binary Financial and their customers.

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BitGo introduces first multiple signature Bitcoin wallet

A key part of the press release stated:

“The current process – and rationale – for buying and owning Bitcoin is similar to acquiring large amounts of physical gold. The logistics can be complex and risky. BTC-01 was created to give clients peace of mind when adding Bitcoin to large and diverse portfolios,” said Harry Yeh, Managing Partner of Binary Financial and co-creator of BTC-01. “In the past when Binary Financial received requests to purchase digital assets on our clients’ behalf we required our clients to provision their own wallets. By partnering with BitGo, we are able to use their multi-sig wallet platform to manage holdings for our clients, reducing the barriers to entry for new investors.”

To date, the vast majority of Bitcoin investment vehicles simply placed customer assets into private funds. Investors benefited from short term market growth but lacked the privacy, control and independence of Bitcoin ownership. High net worth individuals in search of the full benefits of direct Bitcoin ownership were previously required to conduct large transactions unassisted and arrange for secure storage –a time consuming and often perilous process.

With the introduction last year of BitGo’s distributed key, multi-signature secure Bitcoin wallet, Binary Financial recognized the opportunity to bring their substantial experience in buying, storing and transacting in Bitcoin to bear for discerning clients, without having to take custody of investment assets.

“The seemingly endless demand for Bitcoin is in part due to the endless possibilities that it creates,” said Will O’Brien, BitGo chief executive officer and co-founder. “We are glad to be associated with this innovative new service that highlights the type of creativity that the market is capable of once they have the tools to operate within the parameters of complete security and a high degree of flexibility.”

Bitcoin Security and Multi-Signature Wallets

Prior to BitGo’s development and introduction of the first multi-signature wallet, Bitcoin security was equivalent to securing a bar of gold – it could be kept under lock and key but ownership went to anyone that held or was able to obtain that key. BitGo changed this model to that of a bank security deposit box. With BitGo, three separate keys must be used within a set bound of pre-determined parameters, norms and controls, opening a new realm of flexibility and control for Bitcoin storage and security.

Bitcoin A Long Term Investment

With the low Bitcoin price now is a time for those who can to buy Bitcoin in large quantities. Companies and individuals who do this are going to want the best security they can get to make sure they do not lose the investment. Bitcoin is getting active interest in the financial world, and Binary Financial’s deal with BitGo shows that. The deal also shows how a Bitcoin startup created a service in the vacuum that allows for larger investments and security.

BitGo’s key services to facilitate this with products made to meet the needs the finance sector. In the Binary Financial deal we see the BitGo Enterprise multi-user, multi-signature wallet that they setup to service large companies come into play. Investments like Bitcoin are a long term situation and securing them is of the utmost importance.

Look for BitGo to show up in even more large companies investment and usage strategies in the near future.
CCN will be interviewing Will O’Brien at the Inside Bitcoins Conference in Las Vegas this week where we will ask him more questions on the Binary Financial deal and much more.

Images from Bitgo and Shutterstock.

Tags: bitgo
Scott Fargo @TalonTech1

I am a disabled former Systems Admin, computer tech, business manager enjoying crytpo currencies. I am deeply involved in the mining ecosystem and physical coins, It fascinates me how it has brought people from all over the world together into a tight knit supportive community with commerce and tech.