Under the new arrangement, institutions allocate a portion of their holdings at BitGo Bank & Trust for trading on Gate US. BitGo projects these balances to the exchange for order execution, keeping the underlying assets in cold storage until settlement. This process bypasses the need for customers to pre-fund exchange wallets, effectively reducing exposure to venue insolvency or withdrawal restrictions.
BitGo operates this service through its national trust charter, which became effective in December 2025 under the Office of the Comptroller of the Currency. While the model mirrors traditional finance by decoupling custody from execution, BitGo’s own SEC filings warn that the system is not risk-free. The company notes potential for operational errors, technology disruptions, and reconciliation failures, clarifying that the setup does not eliminate all counterparty exposure. Gate US, which holds money-transmitter licenses in 36 states, confirmed that these cryptocurrency accounts remain ineligible for federal deposit insurance.

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