BitGo Expands Services with New OTC Trading Desk
Cryptocurrency custody provider BitGo has launched a global over-the-counter (OTC) trading platform for digital assets, according to a February 18 announcement. The move comes alongside rumors of a potential initial public offering (IPO) in late 2025.
The new OTC platform offers:
- Multi-source liquidity aggregation (including exchanges)
- Spot and derivatives trading across 250+ digital assets
- Integrated lending services
- Yield-generating products
- $250 million insurance coverage
Matt Ballensweig, BitGo's Managing Director, stated: "This provides clients with a full-service trading platform spanning spot, derivatives, and lending—all while assets remain protected under qualified custody until settlement."
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OTC Market Growth in 2024
Finery Markets reports institutional crypto OTC volumes surged 106% in 2024, driven by:
- Donald Trump's election victory
- Rising demand for spot cryptocurrency ETFs
- Institutional adoption of digital asset infrastructure
This growth aligns with BitGo's strategic expansion into OTC services, positioning the company to capitalize on increasing institutional participation.
BitGo's Market Position and Future Plans
Key facts about BitGo:
- $100 billion in total assets under custody
- Provides compliant custody/lending services to U.S. institutions
- Plans to launch retail-focused digital asset solutions in 2025 (including trading/staking services)
Bloomberg reported on February 11 that BitGo is discussing a potential 2025 IPO with investment banks, though no final decision has been made.
The 2025 Crypto IPO Landscape
BitGo may join several major crypto companies eyeing public markets in 2025:
- Circle (stablecoin issuer)
- Kraken (exchange)
- Chainalysis (blockchain analytics)
- Anchorage Digital (crypto bank)
Bitwise predicted in December 2024 that at least five crypto unicorns would go public in 2025, following Coinbase's landmark 2021 Nasdaq listing.
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FAQ: Understanding BitGo's Move
Q: Why is OTC trading important for institutions?
A: OTC desks provide large-volume trades with price stability and reduced market impact compared to public exchanges.
Q: How does BitGo's custody integration benefit traders?
A: Assets remain in qualified custody during transactions, eliminating counterparty risk while enabling trading flexibility.
Q: What differentiates BitGo from other crypto custodians?
A: Its combination of institutional-grade custody, lending services, and now OTC trading creates a full-stack solution for professional investors.
Q: When might BitGo's IPO occur?
A: While unconfirmed, reports suggest late 2025—timing likely depends on market conditions and SEC regulatory developments.
Strategic Implications for Crypto Markets
BitGo's expansion reflects three key industry trends:
- Institutionalization: Growing demand for compliant, full-service crypto platforms
- Vertical integration: Service providers combining custody/trading/lending
- Mainstream adoption: Public listings as crypto firms mature
The company's $100B AUM demonstrates significant market traction, potentially making it one of the most anticipated IPOs in crypto history.
Note: All information accurate as of original reporting dates. IPO plans remain speculative until formally announced.