KuCoin’s $2B ’Trust Project’ with BitGo: Off-Exchange Custody Now Shields Client Assets

KuCoin just made a power move—teaming up with institutional custody giant BitGo to lock down $2 billion in client assets off-exchange. Because apparently, 'not your keys, not your crypto' finally hit home for CEXs.

Cold storage gets hot

The partnership yanks trader funds out of KuCoin's operational wallets into BitGo's armored digital vaults. No more commingling, no more 'oopsie' hacks draining exchange reserves—just segregated accounts with institutional-grade custody. Take that, 'trust us' era.

Timing is everything

Launching mid-2025, the play arrives as regulators globally circle crypto like hawks. KuCoin's preemptive strike? Demonstrate compliance without surrendering control to traditional finance gatekeepers. A rare feat—like a CEX actually learning from past blowups.

The fine print cynic's corner

Sure, $2B sounds impressive... until you realize it's roughly 3% of KuCoin's reported daily volume. Baby steps toward transparency—or just PR cover while the rest stays opaque? Only time (and the next audit) will tell.

The MOVE is part of KuCoin’s $2 billion “Trust Project,” which seeks to improve institutional confidence by reinforcing platform security and operational transparency.

KuCoin said that through this integration, institutional clients can now trade on KuCoin without the need to pre-fund exchange wallets. Instead, assets remain securely held under BitGo Singapore’s regulated custody, introducing a separation of custody and execution that reduces counterparty risk and bolsters systemic resilience.

Security, Flexibility, and Post-Trade Automation

The firm said that this collaboration will give institutional clients access to KuCoin’s trading products—including spot, margin, options, and perpetual futures—through the Go Network.

Clients will have access to custody with insurance coverage up to $250 million, automated post-trade settlement, and delegated trading access without compromising asset control.

“Security and trust are the foundation for institutional adoption. We are proud to integrate with BitGo Singapore’s Go Network. This partnership represents a critical component of our $2 billion Trust Project and delivers a more resilient trading paradigm to institutional clients globally,” said Tika Lum, Head of Institutional Business Development at KuCoin.

New Model for Crypto Trading?

Off-exchange settlement is gaining traction across the industry as exchanges and institutional participants prioritize counterparty risk management. BitGo’s Go Network represents a mature infrastructure standard, already trusted by leading firms for secure digital asset trading.

“Partnering with KuCoin on Go Network through BitGo Singapore marks a major step forward in building a more efficient trading ecosystem. This is how digital asset trading should be—secure, compliant, and built on trust,” said BRETT Reeves, Head of Go Network at BitGo.

With the $2 billion Trust Project as its foundation, KuCoin is reinforcing its commitment to developing trusted digital asset infrastructure.

KuCoin BTC Reserves Collapse

KuCoin saw a dramatic drop in its Bitcoin reserves since mid-2023, when it announced a mandatory Know Your Customer (KYC) requirement. Since that period, the exchange has seen a 77% decline in its Bitcoin reserves.

According to data compiled by Onchain School, KuCoin’s BTC reserves dropped from 18,300 BTC to just 4,100 BTC between June 5 and June 28, 2023.

The outflow totaling over 14,000 BTC correlates closely with the timeline of KuCoin’s announcement to tighten its KYC procedures.