As regulation continues to heat up in the US, Genesis has teamed up with qualified custodian BitGo Trust on a tri-party solution for institutional clients, the companies announced Wednesday. 

Under the agreement, BitGo Trust will provide qualified custody services and cold storage for assets held on behalf of Genesis’ institutional clients, the companies said. 

The teams are hoping to bring tried and true methods of security to the crypto ecosystem. 

“Institutions require a segregation of responsibilities. Trading, settlement, and custody need to be with separate institutions to minimize counterparty exposure,” Adam Sporn, head of prime brokerage at BitGo, told Blockworks. “In traditional finance, the credit crisis in 2008 led to a significant increase in tri-party relationships and we are seeing the same thing post-FTX in the digital asset space.”