As per a latest report from Bloomberg, Crypto custody firm BitGo Inc. has introduced a global over-the-counter trading desk for digital assets as part of its plan to go public.
With rising demand for cryptocurrencies from institutional investors, BitGo is expanding its services. Besides, the firm, one of the largest US-based custodians for digital assets, is reportedly considering an initial public offering, according to sources earlier this month.
BitGo’s new OTC desk will offer institutional investors spot and options trading, as well as lending to facilitate margin trading, the company announced. Since early last year, it has been serving selected clients with billions of dollar in trading volume and a lending book over $100 million. The desk is available not just in the US, but also in Hong Kong and several Middle Eastern countries.
Trading in digital assets dropped significantly after the collapse of crypto exchange FTX in 2022, followed by the failure of major lenders like Genesis, BlockFi, and Celsius Network. As a result, investors have fewer options for leverage during the current crypto bull market, which has been partly driven by US President Donald Trump’s pro-crypto stance.
BitGo plans to utilize its custodian network, allowing investors to trade and swap assets directly without relying on 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.
