BitGo has expanded its digital asset services by launching an over-the-counter (OTC) trading desk that integrates trading, derivatives, lending, and custody solutions. The move aims to provide institutional investors with a streamlined platform for executing transactions while maintaining asset security. The new service also seeks to address risks associated with prefunding by leveraging BitGo’s existing infrastructure. With this development, the company continues its efforts to enhance institutional access to cryptocurrency markets.
BitGo has previously invested in digital asset security and settlement solutions. In 2023, the company introduced the Go Network, a settlement infrastructure that enables instant fund transfers in both cryptocurrencies and traditional currencies. The introduction of the OTC trading desk aligns with this approach, reinforcing BitGo’s focus on efficient and secure financial transactions. Additionally, BitGo recently launched a retail platform to cater to individual investors, signaling a broader expansion of its service offerings.
What features does the new trading desk offer?
The OTC trading desk provides support for spot and derivatives trading, locked token transactions, lending, and yield-generating products. The company highlights that the platform ensures asset protection within qualified custody until settlement, reducing exposure to market risks. Instant settlement is also available, facilitated through the Go Network, which aims to minimize prefunding risks commonly faced by traders.
How has the trading desk performed so far?
Operating discreetly since early 2024, the trading desk has processed transactions worth billions of dollars, with a lending book exceeding $150 million. The company states that demand for the service has been driven by deep liquidity and comprehensive product offerings. The integrated approach is designed to cater to institutional investors looking for secure and efficient trading solutions.
“Our integrated OTC offering gives clients the ability to execute with a full-service desk across spot, derivatives, and lending, all while their assets stay protected in qualified custody until the time of settlement,” said Matt Ballensweig, Managing Director and Head of Trading at BitGo. “We then leverage BitGo’s Go Network to settle assets at the same time—minimizing the hyper-prevalent prefunding risk that underlies our market structure.”
The company’s recent initiatives also include a potential initial public offering (IPO) later this year. Reports indicate that BitGo is exploring a public listing, which could further solidify its position in the digital asset industry. The company was valued at $1.75 billion following a $100 million investment round in 2023.
BitGo’s expansion into OTC trading aligns with a broader industry trend of institutional engagement in cryptocurrency markets. While several firms offer OTC trading, BitGo’s integration of custody and settlement services distinguishes its approach. The market for institutional crypto trading continues to grow, with companies seeking secure and efficient ways to manage their digital assets. By combining trading, custody, and lending into a single platform, BitGo addresses key concerns related to security and liquidity.
