Crypto custody giant BitGo has launched a global over-the-counter (OTC) trading desk for digital assets. This move follows reports that the firm is gearing up for an initial public offering (IPO) later this year.
The newly introduced OTC desk aggregates liquidity from multiple sources, including top crypto exchanges, and supports spot and derivatives trading across more than 250 digital assets. Additionally, it offers lending services and yield-generating products, BitGo announced on Feb. 18.
Institutional Demand Drives OTC Trading Boom
Institutional crypto OTC trading volumes surged by 106% in 2024, largely driven by increased demand following U.S. President Donald Trump’s election victory and the launch of U.S. spot Bitcoin exchange-traded funds (ETFs), according to Finery Markets.
BitGo’s managing director, Matt Ballensweig, emphasized that the OTC desk enhances client execution strategies across spot, derivatives, and lending, ensuring assets remain protected under qualified custody until settlement.
BitGo Strengthens Institutional Offerings
Beyond trading, BitGo provides $250 million in insurance coverage, allowing venture capitalists and hedge funds to trade locked layer-1 tokens securely.
Last December, BitGo introduced a global version of its digital asset solutions tailored for retail investors, mirroring services offered by major crypto exchanges such as trading, staking, and digital wallets.
With the demand for secure and efficient trading solutions rising, OTC desks have become a preferred choice for institutional investors looking to execute large trades with minimal market impact. BitGo’s expansion into OTC trading reinforces its position as a leading institutional service provider in the crypto industry.
IPO Speculations and BitGo’s Market Position
BitGo’s potential public listing has been a hot topic since Bloomberg reported on Feb. 11 that the company was consulting with investment banks for a possible public offering in the second half of 2025. However, discussions are still ongoing, and no final decision has been made.
Currently, BitGo provides regulated crypto custody, lending, and infrastructure services to institutional clients in the U.S., managing an impressive $100 billion in assets under custody. If BitGo moves forward with its IPO, it will join the growing list of crypto firms eyeing public markets.
In December, Bitwise, a major crypto ETF issuer, predicted that at least five crypto unicorns would go public in 2025. This includes stablecoin issuer Circle, crypto exchanges Kraken and Figure, blockchain analytics firm Chainalysis, and crypto bank Anchorage Digital.
Crypto Firms Following Coinbase’s Public Listing Footsteps
If BitGo proceeds with its IPO, it will follow in the footsteps of Coinbase, which became the first major crypto exchange to go public in 2021, listing its shares on Nasdaq.
The potential wave of crypto firms going public highlights the industry’s increasing legitimacy and institutional adoption. As regulatory clarity improves and Bitcoin ETFs gain mainstream acceptance, more companies are expected to explore public listings to expand their market reach, BitGo’s expansion into OTC trading positions it strategically to capitalize on the evolving financial landscape.
The rise of Bitcoin ETFs and increasing demand for secure custody solutions suggest that companies like BitGo are positioning themselves for a broader market reach in the evolving crypto ecosystem.
Related: BitGo Expands to Singapore with New Subsidiary Launch
Michelle White is a lively crypto and blockchain news writer. She makes digital currencies fun and easy to understand with her cheerful personality and storytelling skills. When she’s not covering the latest in blockchain, Michelle enjoys exploring new tech projects and reading in her cozy home office. For a fresh take on crypto news, Michelle’s your go-to gal!
