Itbit

What is Itbit?

Itbit Exchange, launched in 2012, is the world’s first regulated digital asset exchange designed for institutional clients. Licensed and overseen by the New York Department of Financial Services (NYDFS), it provides deep liquidity and access to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Stellar Lumens, and more. Itbit supports spot trading, escrow services, OTC desks, and regulated custody through Paxos Trust Company, with insured asset custody up to US$100 million per customer.

As a regulated VASP, Itbit employs industry-standard protections: cold storage, hot wallet transaction limits, two-factor authentication, encrypted ledger systems, and blockchain transaction monitoring to prevent manipulation or fraud. Its APIs support FIX, REST, and WebSocket connectivity, enabling exchange integration with institutional brokers, hedge funds, and fintechs. Price-time priority and volume-weighted execution policies ensure competitive pricing and depth.

Itbit also offers an escrow solution, allowing external wallets or entities to escrow Bitcoin in a custodial account managed by Paxos, released via dual-signature workflows—with REST or FIX automation—as validated transactions occur.

Key Features

• NYDFS Oversight: Full regulatory compliance with budgetary audits, AML/KYC, and frequent third-party security assessments.
• Institutional Liquidity: Low-latency, multi-currency orderbook across spot BTC, ETH, LTC, BCH, XLM.
• Custody & Escrow: Paxos-trusted cold wallet access, hot wallet protocol limits, and insured coverage.
• FIX/API Integration: REST, FIX, and WebSocket for automated and aggregated trading workflows.
• Security Monitoring: On-chain pattern detection to prevent wash trading and market manipulation.

Use Cases

• Asset Managers: Large-scale BTC purchases with low slippage via Itbit’s orderbook or OTC.
• Fintech Platforms: Build compliant crypto offerings using Itbit’s APIs and custody services.
• Corporate Treasury: Host escrow accounts with dual-sign approval, track withdrawals and settlements for internal controls.
• Compliance Teams: Conduct regulatory audits using immutable custody and escrow logs.

With integration into Cryptoworth’s crypto accounting software, Itbit provides structured trade, custody, fee, and escrow data—automatically posting cost‑basis, fee expense, asset balances, and withdrawal events into ERP-ready journal models.

Frequently Asked Questions

Can Cryptoworth record Itbit trades and custody flows?

Yes. Itbit’s APIs provide trade execution data, settlement timestamps, custody movements, and fee info. Cryptoworth transforms these into journal entries for cost‑basis, asset balance, and expense tracking.

Is escrow activity supported?

Yes. Rest API and FIX escrow transaction events are captured and logged by Cryptoworth as conditional custody or escrow release journal entries.

Does this meet institutional audit standards?

Absolutely. Regulatory oversight from NYDFS, dual‑signature custody workflows, and third‑party security audits ensure compliance-grade data—mapped directly into Cryptoworth’s audit-ready ledgers.

How are on-chain manipulations tracked?

Itbit provides on-chain transaction flags via monitoring engines. Cryptoworth logs flagged trades or wash-trade alerts, enabling risk review and compliance disclosures.