KuCoin, a leading cryptocurrency exchange serving over 41 million users, has formed a strategic partnership with BitGo Singapore Pte. Ltd. to provide off-exchange custody solutions. This collaboration is part of KuCoin's $2 billion "Trust Project" aimed at boosting asset security and building trust among institutional clients.
Through integration with BitGo's Go Network for Off-Exchange Settlement (OES), KuCoin institutional clients will benefit from secure asset custody regulated under the Monetary Authority of Singapore (MAS), with insurance coverage up to $250 million. The new system allows clients to trade without pre-funding exchange wallets, keeping assets in segregated custody to reduce counterparty risks and improve systemic resilience.
The partnership supports automated post-trade settlement and delegated trading access across KuCoin's product offerings, including spot, margin, options, and perpetual futures. Industry experts view this shift toward custody and trading separation as a critical security trend, especially in the wake of incidents like FTX, driving safer market practices and enhanced institutional confidence.
KuCoin's Head of Institutional Business Development, Tika Lum, emphasized the initiative as a foundation for institutional adoption, reinforcing trust and platform security globally. Prior to this, KuCoin experienced a significant decline in Bitcoin reserves due to tightened Know Your Customer (KYC) requirements, highlighting a trend toward improved compliance and risk management.