Crypto Custodian BitGo Launches Global OTC Trading Desk Amid Rumored Late 2025 IPO

Crypto Custodian BitGo Launches Global OTC Trading Desk Amid Rumored Late 2025 IPO

Crypto custodian BitGo has officially launched a global over-the-counter (OTC) trading desk for digital assets, marking a significant expansion of its services. This move comes on the heels of reports suggesting that BitGo is in advanced discussions for a potential initial public offering (IPO) later this year, with further public listing plans possibly extending into late 2025.

Expanding Trading Capabilities

In a statement issued on February 18, BitGo announced the opening of its new OTC desk. The platform boasts access to dozens of liquidity sources, including major exchanges, and provides a comprehensive suite of trading services. Clients can now trade over 250 digital assets through spot and derivatives markets, while also benefiting from lending services and yield-generating products.

BitGo’s Managing Director, Matt Ballensweig, explained that the new desk is designed to offer institutional clients a full-service trading experience:

“Our OTC desk gives clients the ability to execute across spot, derivatives, and lending—all while their assets remain secure in qualified custody until settlement.”

Additionally, the platform offers robust insurance coverage of $250 million, adding an extra layer of security for transactions. It also enables venture capitalists and hedge funds to trade locked layer-1 tokens, further broadening the scope of its services.

Market Surge and Institutional Demand

According to Finery Markets, an OTC infrastructure firm, institutional crypto OTC trading volumes skyrocketed by 106% in 2024. This surge was largely driven by heightened market activity following former US President Donald Trump’s election win, as well as growing demand for US spot crypto exchange-traded funds (ETFs). These trends underscore the expanding appetite among institutional investors for regulated and secure crypto trading solutions.

Rumored IPO and Future Prospects

Rumors about BitGo’s IPO have been circulating since Bloomberg reported on February 11 that the company was in discussions with investment banks regarding a public launch. While final decisions remain pending, these deliberations hint at a broader strategy to join other major crypto firms planning to go public in the near future. BitGo currently provides regulated crypto custody, lending, and infrastructure services to US institutions and manages approximately $100 billion in assets under custody.

The potential IPO could position BitGo alongside several anticipated crypto unicorns expected to enter the public markets in 2025. Crypto ETF issuer Bitwise recently predicted that stablecoin issuer Circle, crypto exchanges Kraken and Figure, crypto bank Anchorage Digital, and blockchain analytics firm Chainalysis are among those likely to make the leap.

Strategic Industry Implications

By launching its global OTC trading desk, BitGo is not only enhancing its service offerings but also strengthening its foothold in the competitive digital assets space. The move is expected to spur further adoption of regulated OTC platforms, which many experts believe could accelerate mainstream crypto acceptance. As the crypto market matures, such infrastructure enhancements are crucial for providing secure, efficient, and liquid trading environments.

With the anticipated IPO on the horizon, BitGo’s latest development may serve as a significant catalyst for the company’s growth, enabling it to capitalize on increasing institutional demand and further solidify its role as a key player in the evolving digital asset ecosystem.

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