KuCoin Launches Pre-Funding Free Trading for Institutional Clients

KuCoin, a prominent cryptocurrency exchange based in the Seychelles, has introduced a new feature allowing institutional clients to trade without the need to pre-fund their wallets. This innovation aims to provide institutional traders with a familiar experience akin to that of the traditional finance (TradFi) world. By partnering with BitGo Singapore, KuCoin will utilize BitGo's Go Network for off-exchange settlement (OES). This collaboration ensures that institutional clients' assets remain securely stored in BitGo Singapore's custody, adhering to the model of separating custody and execution to mitigate counterparty and systemic risks.

KuCoin's full range of products, including spot, margin, options, and perpetual futures, can now be accessed through the Go Network. This integration not only enhances the security of assets but also offers institutional clients a seamless trading experience. The move comes as crypto companies increasingly focus on attracting institutional investors by introducing tools and services that are familiar to TradFi professionals.

This development echoes the now-defunct Silvergate Bank's Exchange Network (SEN) platform, which facilitated the movement of funds between institutions and exchanges. The discontinuation of SEN in March 2023 during the crypto winter highlighted the challenges faced by financial institutions in the volatile crypto market. KuCoin's new feature aims to address these challenges by providing a more secure and efficient trading environment for institutional clients.