In a major development for the digital asset industry, BitGo has officially launched its global over-the-counter (OTC) trading desk, marking a strategic expansion into comprehensive institutional trading services. The move comes amid growing speculation that the prominent crypto custodian is preparing for an initial public offering (IPO) by late 2025.
This launch positions BitGo as a full-service financial infrastructure provider, combining qualified custody with advanced trading capabilities—including spot, derivatives, lending, and yield-generating products—on a single integrated platform.
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A Full-Service Institutional Platform
Announced on February 18, BitGo’s new OTC trading desk offers access to over 250 digital assets through multiple liquidity sources, including major centralized exchanges. Unlike traditional OTC desks that focus solely on large-volume trades, BitGo integrates its core strength—regulated custody—directly into the trading workflow.
According to Matt Ballensweig, Managing Director at BitGo, the platform delivers a seamless experience:
“Our OTC desk provides clients with a one-stop solution for spot, derivatives, and lending transactions—all while ensuring assets remain under qualified custody protection until settlement.”
This integration addresses one of the biggest concerns in institutional crypto trading: counterparty risk. By maintaining custody throughout the transaction lifecycle, BitGo enhances security and compliance—key factors for hedge funds, venture capital firms, and other regulated entities.
The platform also includes up to $250 million in insurance coverage and enables strategic trading of locked Layer-1 tokens, offering greater flexibility for long-term investors and early-stage backers.
Surging Demand for OTC Services
BitGo’s expansion aligns with a broader industry trend. Finery Markets, a leading OTC infrastructure provider, reported a 106% year-over-year increase in institutional crypto OTC trading volume in 2024. This surge was fueled by two primary catalysts:
- Growing interest in spot cryptocurrency ETFs following regulatory approvals in the U.S.
- Increased market confidence post-U.S. presidential election, particularly around pro-crypto policy shifts under Donald Trump’s administration.
As more traditional financial institutions enter the crypto space, demand for private, high-volume trading channels continues to rise. OTC desks minimize market impact compared to open exchange trading, making them ideal for large orders.
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Strategic Expansion Beyond Institutions
While BitGo has long served institutional clients with custody and lending solutions, this OTC launch is part of a wider growth strategy. In December 2024, the company announced plans to roll out a global retail-focused digital asset platform, offering trading, staking, and wallet services—effectively positioning itself as a hybrid custodian-trading provider across both institutional and retail markets.
This dual-track approach mirrors trends seen among other major players aiming to capture value across the entire crypto financial stack.
IPO Rumors Gain Momentum
Speculation about BitGo going public intensified in February when Bloomberg reported that the company had begun discussions with investment banks regarding a potential IPO in the second half of 2025. While no final decision has been confirmed, sources suggest that preparations are underway.
If realized, BitGo’s IPO would place it among a wave of anticipated public listings from major crypto firms in 2025. Industry analysts predict a breakout year for crypto unicorns seeking public market validation.
Bitwise, a leading crypto ETF issuer, forecasted in late 2024 that at least five major crypto companies could go public in 2025, including:
- Circle (issuer of USDC stablecoin)
- Kraken (cryptocurrency exchange)
- Figure Technologies (blockchain lending)
- Anchorage Digital (crypto bank)
- Chainalysis (blockchain analytics)
Coinbase’s successful 2021 Nasdaq listing set a precedent as the first major U.S.-based crypto exchange to go public. Since then, regulatory clarity and maturing market infrastructure have paved the way for more entrants.
BitGo claims to currently safeguard over $100 billion in assets under custody, underscoring its scale and trust within the institutional ecosystem. An IPO would likely accelerate its global expansion and product innovation.
Why This Matters for the Crypto Ecosystem
BitGo’s evolution reflects a broader maturation of the digital asset industry. As boundaries between traditional finance (TradFi) and decentralized finance (DeFi) blur, companies like BitGo are building regulated bridges that meet compliance standards without sacrificing performance or accessibility.
Their integrated model—custody + trading + lending—represents the future of institutional-grade crypto infrastructure.
Moreover, increased OTC activity signals deeper market liquidity and reduced volatility risks, which are essential for attracting pension funds, asset managers, and other conservative investors.
Frequently Asked Questions
Q: What is an OTC desk in cryptocurrency?
A: An over-the-counter (OTC) desk facilitates direct trades between two parties without using a public exchange. It's commonly used for large transactions to avoid slippage and minimize market impact.
Q: Is BitGo launching an IPO in 2025?
A: While there is strong speculation and ongoing discussions with banks about a potential IPO in late 2025, BitGo has not made any official confirmation. Reports indicate talks are still preliminary.
Q: How does BitGo’s OTC platform differ from others?
A: BitGo uniquely integrates qualified custody with trading and lending services. Assets remain protected under regulated custody during transactions—a critical advantage for institutional clients concerned about security and compliance.
Q: Which cryptocurrencies are supported on BitGo’s OTC desk?
A: The platform supports over 250 digital assets, including major spot cryptocurrencies and derivatives linked to popular Layer-1 blockchains.
Q: Who uses OTC trading platforms?
A: OTC desks primarily serve institutional investors such as hedge funds, venture capital firms, family offices, and corporations looking to execute large trades efficiently and privately.
Q: Does BitGo offer services to retail investors?
A: Yes. While historically focused on institutions, BitGo is expanding into retail with a new global platform offering trading, staking, and wallet functionality—expected to roll out in phases throughout 2025.