BitGo, a leading name in crypto custody services, has announced the launch of its new global over-the-counter (OTC) trading desk specifically for digital assets.
This move comes as the company gears up for a highly anticipated initial public offering (IPO) later this year.
New Trading Desk Features
According to a statement from BitGo on February 18, the trading desk connects users to a wide range of liquidity providers, including various exchanges.
It facilitates trading in both spot and derivatives for over 250 digital assets and offers lending and yield-generating solutions.
In 2024, the crypto OTC sector saw a staggering 106% increase in institutional trading volume.
This boom can be traced back to the election of US President Donald Trump and a growing appetite for spot exchange-traded funds within the cryptocurrency market, as highlighted by the OTC infrastructure firm Finery Markets.
Security and Insurance Coverage
Matt Ballensweig, the managing director of BitGo, emphasized that the new desk provides clients with a full suite of services for their trading needs.
This includes spot trading, derivatives, lending, and, importantly, the assurance that their assets will remain secure in qualified custody until the transactions settle.
In addition, BitGo’s platform is backed by an impressive $250 million in insurance coverage.
This protection gives venture capitalists and hedge funds the confidence to trade locked layer-1 tokens, as stated in their announcement.
Future Plans and Market Position
Last December, BitGo shared its plans to roll out a global version of its digital asset services aimed at retail users.
This new offering will include trading, staking, and wallet services similar to those provided by traditional cryptocurrency exchanges.
On February 11, Bloomberg reported that BitGo is currently in discussions with investment banks regarding a potential public offering slated for the latter half of 2025.
However, these discussions are still in progress, and no final decision has been made.
As a regulated provider of custody, lending, and infrastructure services in the US, BitGo claims to manage $100 billion in assets under custody.
With a public debut on the horizon, the firm is poised to join other prominent cryptocurrency companies that are also eyeing the public equity markets in 2025.
According to a forecast by crypto ETF issuer Bitwise, at least five significant crypto unicorns, including stablecoin issuer Circle, exchanges Kraken and Figure, as well as crypto bank Anchorage Digital and blockchain analytics firm Chainalysis, are expected to seek public offerings next year.
In 2021, Coinbase etched its name in history as the first major cryptocurrency firm to go public in the United States, making waves by listing its shares on the Nasdaq exchange.
Source: Cointelegraph
