BTC basis trade — customer onboarding and trade flow
How a client onboards, funds, borrows, and trades across the custody, credit, and execution layers. Integration details are being finalized with Monolith; this page describes the current architecture.
The parties
Custody, credit, and execution are separated by design. Each layer is operated by the party accountable for it.
BitGo
Holds client BTC in vaults and omnibus accounts, segregated, and attests custody to Ascend. Fiat enters through BitGo and its banking partner.
Ascend
Runs the single KYC and issues the client's eligibility as onchain claims. Maintains segregated client accounts and the margin account that draws stablecoins against custodied BTC under haircut and LTV policy.
Monolith
The order book. Admits clients on the claims issued at onboarding (no second KYC) and hosts all trading, perpetuals and spot.
The workflow
Five steps from registration to an open position. One onboarding, one custodian, one venue.
The BTC stays in custody for the life of the trade. Only borrowed stablecoins move.
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01
Onboard once
The client registers once, with Ascend as clearing agent. KYC runs at Ascend and eligibility is issued as onchain claims; Monolith relies on them, so there is no second KYC at the venue.
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02
Fund
BTC moves into BitGo custody: vault-held, segregated, attested to Ascend. Entering from fiat, the onramp runs through BitGo and its banking partner and settles into the same custody.
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03
Borrow
The custodied BTC is pledged to the client's margin account at Ascend, which draws stablecoins under haircut and LTV policy. The BTC stays in custody throughout; stablecoin liquidity is sourced from a marketplace of lenders.
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04
Connect
The client connects to Monolith. The venue recognizes the claims issued at onboarding and takes positions against the Ascend margin account.
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05
Trade
The position opens on Monolith against the margin account: a short perpetual against the long custodied BTC. Spot-only clients trade spot on the same rails, with the same onboarding and custody.
Fiat onramp
For clients starting from fiat rather than BTC.
Clients entering from fiat onboard with Ascend the same way. The onramp runs through BitGo and its banking partner; funds settle into custody and follow the same workflow from step 02.
