BitGo Expands into Institutional-Grade OTC Trading Market, Laying the Groundwork for IPO in the Second Half of 2025
BitGo, a cryptocurrency custody company based in the United States, announced yesterday the launch of its global over-the-counter (OTC) platform, which covers spot and derivatives trading of over 250 digital assets. This move comes as the company reportedly plans to go public by the end of 2025.
**BitGo OTC Services: Trade with Confidence Under Compliant Custodial Protection**
In a statement, cryptocurrency custodian BitGo officially launched its global OTC business, offering features such as “instant trading, derivatives trading, lending, and yield products,” while integrating BitGo’s compliant custody services.
BitGo emphasized that its OTC trading services primarily feature the following key characteristics:
– **Diverse Liquidity Sources**: Integration of dozens of exchanges and other liquidity providers (LPs) ensures more favorable pricing and trading depth.
– **Support for Over 250 Digital Assets**: Covers both spot and derivatives trading to meet diverse investment strategy needs.
– **Custodial Protection Mechanism**: Trading assets are protected under “Qualified Custody” until settlement, enhancing security.
– **Lending and Yield Products**: Institutional investors can participate in the lending market and yield management, improving capital efficiency.
– **High Insurance Coverage**: Offering $250 million in insurance to reduce trading risks.
– **Locked Token Trading**: Capable of trading locked L1 tokens, catering to the demands of venture capital firms and hedge funds, while enhancing market liquidity.
These features will position BitGo’s OTC trading platform as a secure and flexible choice for institutional investors seeking substantial cryptocurrency transactions.
**Surging Demand for OTC Trading, Possibly Influenced by ETFs and the U.S. Election**
According to data from OTC infrastructure company Finery Markets, institutional-grade cryptocurrency OTC trading volume is expected to surge by 106% in 2024, mainly driven by demand stemming from the potential victory of U.S. President Trump and the Bitcoin spot ETF.
(BitGo’s OTC Market is Booming, Options Market Assists Institutions in Hedging)
Matt Ballensweig, head of BitGo’s trading division, stated: “Having experienced multiple market cycles and gained a deep understanding of market operations, we have been quietly building a truly institutional-grade cryptocurrency trading platform. Now, we are confident in providing services that other brokers cannot match.”
“Our integrated OTC trading services allow clients to execute any trade through a comprehensive trading platform while utilizing BitGo’s Go Network to synchronize asset settlement, ensuring assets are protected under qualified custody before settlement.”
**BitGo Expected to Go Public in 2025, Competing with Multiple Crypto Unicorns**
As a custodian managing over $100 billion in assets, BitGo recently revealed that it is in discussions with several investment banks regarding a potential initial public offering (IPO) plan, expected to take place in the second half of 2025. Internal discussions are still ongoing, and no final decision has been made yet.
Previously, the company was valued at $1.75 billion during its last Series C funding round in 2023, and its recent moves to expand financial infrastructure seem aimed at attracting more institutional investors.
(Is the IPO Craze Brewing? Custodian BitGo, Previously Invested in by the Crypto Tsar, Anticipates Going Public in Q2 This Year)
Meanwhile, BitGo may compete with other cryptocurrency unicorns planning to go public. Asset management firm Bitwise predicted in a report last December that at least five “crypto unicorns” would seek an IPO in 2025, naming stablecoin issuer Circle, fintech firm Figure, and cryptocurrency exchange Kraken.
Additionally, recent disclosures from cryptocurrency exchanges Gemini and Bullish have indicated their intentions to pursue IPOs.
**BitGo Actively Expanding Trading Business, Paving the Way for IPO**
With the launch of its OTC trading desk, BitGo combines deep liquidity, a comprehensive product suite, and secure custody to provide institutional clients with a more robust digital asset trading experience. As market demand for compliant trading and custody continues to grow, BitGo is rapidly consolidating its market position, paving the way for its potential IPO plans.
**Risk Warning**
Cryptocurrency investments carry high risks, and their prices can fluctuate dramatically. You may lose your entire principal. Please assess risks carefully.
