BitGo Boosts Crypto Trading with New Global OTC Desk as IPO Nears

Crypto custody firm BitGo Inc. is making big moves in the digital asset space. According to a recent Bloomberg report, the company has introduced a global over-the-counter (OTC) trading desk, expanding its services as it considers going public.

BitGo Eyes IPO as Institutional Demand Grows

With more institutional investors entering the crypto market, BitGo is expanding to meet demand. The Palo Alto-based firm, one of the largest digital asset custodians in the U.S., is reportedly in talks with advisers about a possible initial public offering (IPO) in the second half of this year.

In 2023, BitGo raised $100 million at a $1.75 billion valuation, attracting investors like Goldman Sachs, DRW Holdings, Redpoint Ventures, and Valor Equity Partners. While discussions continue, no final decision has been made.

New OTC Trading Desk Targets Institutional Clients

BitGo’s newly launched OTC trading desk offers institutional investors spot and options trading along with lending services for margin trading. Since early last year, it has facilitated billions of dollars in trading volume and now manages a lending book of over $100 million for select clients.

The trading desk is available in the U.S., Hong Kong, and several Middle Eastern countries, showing BitGo’s push for global expansion.

Market Shakeup Opens Doors for BitGo

The collapse of FTX in 2022 and the failures of Genesis, BlockFi, and Celsius Network caused a sharp decline in crypto trading. As a result, institutional investors now have fewer options for leverage. However, the ongoing crypto bull market, partly fueled by U.S. President Donald Trump’s pro-crypto stance, has revived interest in digital assets.

BitGo’s Plan to Reshape Crypto Trading

BitGo aims to use its strong custodian network to let investors trade and swap digital assets directly, removing the need for third-party custody providers.

“This expansion into capital markets and trading is just a natural extension of where we want to be,” said Matt Ballensweig, head of trading at BitGo.

With its new OTC desk and potential IPO, BitGo is positioning itself as a key player in the evolving crypto market.