BitGo, a leading digital asset custodian, has unveiled a 24/7 global over-the-counter (OTC) trading desk, enabling institutional investors to engage in both spot and derivatives trading across more than 250 digital assets. This new service aims to enhance liquidity, offer competitive pricing, and provide flexible order types through multiple exchanges and institutional liquidity providers.
According to BitGo’s February 19 announcement, the platform caters to venture capital firms and hedge funds, leveraging its role as a “preferred qualified custodian to major protocols.” This allows clients to trade locked and unvested layer-1 tokens, granting them greater flexibility in managing allocations. To ensure security, the OTC desk integrates with BitGo’s in-house custody services, keeping client funds secure until settlement. Additionally, BitGo is providing $250 million in insurance coverage to bolster investor confidence.
Operating in “stealth mode” since early 2024, the platform has already processed billions in trading volume and built a $150 million lending book. BitGo emphasized that the rapid surge in demand highlights institutional investors’ need for tailored trading solutions integrated with qualified custody services.
The newly launched OTC desk is led by industry veterans Matt Ballensweig, formerly of Genesis, and Stefan Von Haenisch, previously at OSL Group. The service operates around the clock to accommodate institutional clients worldwide. Ballensweig commented on the launch, noting that the integrated OTC offering provides clients with access to spot, derivatives, and lending services while maintaining asset security within qualified custody “until the time of settlement.”
“We then leverage BitGo’s Go Network to settle assets at the same time—minimizing the highly prevalent prefunding risk that underlies our market structure,” he added.
BitGo’s latest venture is part of its broader expansion strategy, which has seen the firm strengthen its services and market reach over the past year. In November, BitGo extended its operations to the Asia-Pacific region through its subsidiary, BitGo Singapore, after obtaining a Major Payment License from the Monetary Authority of Singapore in August.
Furthering its reach, the firm launched wrapped Bitcoin (WBTC) on Avalanche and BNB Chain in September, broadening its support beyond Ethereum. This initiative was made possible through a partnership with LayerZero. Additionally, in December, BitGo entered the retail market with a platform tailored to retail investors, allowing them to access tools previously available only to institutional players.
Looking ahead, there are growing speculations that BitGo may go public as early as the second quarter of 2025. A Bloomberg report cited insider sources suggesting that the company is actively preparing for an initial public offering (IPO) in the coming months. If realized, this move would mark a significant milestone in BitGo’s continued expansion within the digital asset industry.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist