The American cryptocurrency custody company BitGo announced yesterday the launch of a global over-the-counter (OTC) trading platform covering spot and derivatives trading for over 250 digital assets. This move comes as the company reportedly plans to go public by the end of 2025.
**BitGo OTC Services: Trade with Confidence Under Compliant Custodial Protection**
Crypto custodian BitGo stated in a press release that it has officially launched its global OTC business, offering features such as “instant trading, derivatives trading, lending, and yield products,” while integrating BitGo’s compliant custody services.
BitGo emphasized that its OTC trading services primarily feature the following key characteristics:
– **Diverse Sources of Liquidity:** Integration with dozens of exchanges and other liquidity providers (LPs) to ensure more favorable pricing and trading depth.
– **Support for Over 250 Digital Assets:** Covering both spot and derivatives trading to meet different investment strategy needs.
– **Custodially Protected Trading Mechanism:** Assets remain under “Qualified Custody” protection until settlement, enhancing security.
– **Lending and Yield Products:** Institutional investors can participate in the lending market and yield management to improve capital efficiency.
– **High Insurance Coverage:** Offering $250 million in insurance to reduce trading risks.
– **Locked Token Trading:** Ability to trade locked L1 tokens, satisfying the demands of venture capital firms and hedge funds while enhancing market liquidity.
These features position BitGo’s OTC trading platform as a safe and flexible choice for institutional investors seeking large-scale cryptocurrency transactions.
**Surge in OTC Trading Demand, Possibly Influenced by ETFs and the U.S. Election**
According to data from OTC infrastructure company Finery Markets, the volume of institutional-grade cryptocurrency OTC trading is expected to surge by 106% in 2024, primarily driven by demand from the anticipated victory of President Trump and Bitcoin spot ETFs.
(Bitcoin OTC Market Booms, Options Market Aids Institutional Hedging)
Matt Ballensweig, head of BitGo’s trading department, stated, “After experiencing multiple market cycles and gaining deep insights into market operations, we have quietly built a truly institutional-grade cryptocurrency trading platform. Now, we are confident in offering services that other brokers cannot match.”
“Our integrated OTC trading services allow clients to execute any trade through a comprehensive trading platform while leveraging BitGo’s Go Network to synchronize asset settlements, ensuring that assets are protected under qualified custody before settlement.”
**BitGo Expected to Go Public in 2025, Competing with Several Crypto Unicorns**
As a custodian managing over $100 billion in assets, BitGo recently revealed that it is in discussions with several investment banks regarding a potential initial public offering (IPO), anticipated in the second half of 2025. Internal discussions are ongoing, with no final decision made yet.
Previously, the company’s valuation reached $1.75 billion during its last Series C financing round in 2023, and its recent moves to expand financial infrastructure seem aimed at attracting more institutional investors’ attention.
(Is an IPO Boom Brewing? Custodian BitGo, Backed by Crypto Tsar, Expected to Go Public in Q2 This Year)
Meanwhile, BitGo may find itself competing with other cryptocurrency unicorns planning to go public. Asset management firm Bitwise predicted in a report last December that at least five “crypto unicorns” would seek to go public in 2025, naming stablecoin issuer Circle, fintech company Figure, and cryptocurrency exchange Kraken.
Additionally, recent disclosures indicate that cryptocurrency exchanges Gemini and Bullish have also expressed intentions to pursue IPOs.
**BitGo Actively Expanding Trading Business, Paving the Way for IPO**
With the launch of its OTC trading desk, BitGo combines deep liquidity, a comprehensive product suite, and secure custody to provide a more complete digital asset trading experience for institutional clients. As demand for compliant trading and custody continues to grow, BitGo is swiftly solidifying its market position, paving the way for its potential IPO plans.
**Risk Warning**
Investing in cryptocurrencies carries a high degree of risk, and their prices can be highly volatile; you may lose all your principal. Please assess risks carefully.