BitGo, a leading name in crypto custody services, has announced the launch of its global over-the-counter (OTC) trading desk for digital assets. This bold step comes as the company eyes a potential initial public offering (IPO) later in 2025.
The new OTC desk offers a wide range of services, including spot and derivatives trading across more than 250 digital assets, lending solutions, and yield-generating products. BitGo aims to cater to the growing demand for institutional crypto services, a market that saw an impressive 106% surge in OTC trading volumes last year.
A Timely Expansion
This growth in institutional trading was largely fueled by U.S. President Donald Trump’s election and the rising interest in spot crypto exchange-traded funds (ETFs). BitGo’s OTC desk, supported by a network of liquidity sources spanning multiple exchanges, positions the company to meet the diverse needs of its clients.
The platform also provides $250 million in insurance coverage, a critical feature for institutional investors. Additionally, it enables trading of locked layer-1 tokens, a key service for venture capitalists and hedge funds.
Matt Ballensweig, BitGo’s managing director, highlighted the desk’s unique value proposition. “The desk gives clients the ability to execute with a full-service desk across spot, derivatives, and lending, all while their assets stay protected in qualified custody until the time of settlement,” he stated.
Building Momentum for an IPO
This announcement follows BitGo’s December unveiling of global digital asset solutions for retail investors. That move expanded its services to include trading, staking, and wallet options, mimicking offerings from major crypto exchanges.
The potential IPO, planned for the second half of 2025, is still under consideration. If it proceeds, BitGo would join other crypto heavyweights like Circle, Kraken, and Anchorage Digital, all rumored to be planning public listings this year. Bitwise has predicted at least five crypto unicorns will go public in 2025, following Coinbase’s landmark Nasdaq debut in 2021.
Institutional Crypto Adoption on the Rise
BitGo is currently a regulated entity managing $100 billion in assets under custody. By launching a regulated OTC trading desk, the company is paving the way for broader institutional adoption of cryptocurrencies.
As BitGo continues to expand its services, its IPO ambitions seem more tangible than ever. Whether it’s custody, lending, or trading, the firm is solidifying its position as a critical player in the evolving crypto landscape.
