Key Takeaways:
- BitGo launches OTC trading: The crypto custody firm introduced a global OTC trading desk, offering spot and derivatives trading for over 250 digital assets.
- Rising institutional demand: Institutional OTC trading volumes surged 106% in 2024, driven by political events and crypto ETF adoption.
- IPO speculation grows: BitGo is reportedly in talks with investment banks for a potential public listing in late 2025, though no final decision has been made.
Crypto custody firm BitGo has launched an over-the-counter (OTC) trading desk, expanding its institutional services amid growing speculation of a potential IPO in 2025.
The new OTC desk provides access to multiple liquidity sources, supporting spot and derivatives trading across more than 250 digital assets, along with lending and yield-generating products.
We're formally unveiling @BitGo's OTC Trading desk, which offers 24/7 spot, derivative and lending liquidity to all of our institutional clients globally.
— Matt Ballensweig (@mtballensweig) February 18, 2025
Our edge: Trade while your assets remain in segregated qualified custody and post-trade settle. No "prefunding" required. https://t.co/CyEKm2TTo2
Institutional demand for OTC crypto trading surged 106% in 2024, driven by factors like the U.S. presidential election and the rise of spot crypto ETFs, according to Finery Markets.
Matt Ballensweig, BitGo’s Managing Director, highlighted that the platform allows institutional investors to trade various crypto products while keeping their assets secure in qualified custody until settlement.
Additionally, BitGo offers $250 million in insurance coverage and enables trading of locked layer-1 tokens, making it attractive to hedge funds and venture capital firms.
The IPO speculation follows a Feb. 11 Bloomberg report stating that BitGo is in discussions with investment banks about going public in late 2025.
BitGo currently manages over $100 billion in assets and could join other major crypto firms eyeing IPOs, such as Kraken, Anchorage Digital, and Chainalysis.
If successful, BitGo would follow in the footsteps of Coinbase, which went public in 2021.
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Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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