The cryptocurrency custody leader BitGo has officially launched its global over-the-counter (OTC) trading desk, signaling a major strategic expansion into institutional financial infrastructure. This move positions BitGo at the forefront of secure, compliant digital asset trading—just as rumors intensify about its potential IPO in the second half of 2025.
With support for more than 250 digital assets across spot and derivatives markets, integrated lending and yield solutions, and robust qualified custody protection, BitGo’s new OTC platform is engineered specifically for institutional clients seeking efficiency, security, and scalability in high-volume crypto transactions.
A Secure, Full-Service OTC Platform Built for Institutions
BitGo's newly launched OTC trading service combines deep liquidity, advanced financial products, and ironclad security—all under one integrated ecosystem. By merging trading, derivatives, lending, and custody into a unified offering, BitGo addresses key pain points faced by hedge funds, venture capital firms, family offices, and asset managers navigating the complex crypto landscape.
Key features of the BitGo OTC desk include:
- Multi-source liquidity aggregation: The platform pulls from dozens of exchanges and leading liquidity providers to ensure competitive pricing and deep order books.
- Broad asset coverage: Over 250 digital assets supported, including major cryptocurrencies, emerging tokens, and niche protocols across spot and derivative instruments.
- Qualified custody protection: Assets remain under BitGo’s regulated custodial framework throughout the transaction lifecycle, minimizing counterparty and settlement risks.
- Capital efficiency tools: Integrated lending and yield-generating products allow institutions to deploy idle assets while maintaining exposure.
- $250 million insurance coverage: One of the highest insurance protections in the industry, reinforcing trust and reducing operational risk.
- Locked token trading capability: Enables trading of vested Layer 1 tokens—critical for VCs and private investors managing illiquid allocations.
This end-to-end infrastructure empowers institutions to execute large trades with minimal slippage and maximum security, making BitGo a compelling alternative to traditional crypto brokers or fragmented third-party services.
Why Institutional Demand for OTC Is Surging
Institutional appetite for crypto has reached new heights, driven largely by macro developments such as the U.S. approval of spot Bitcoin ETFs and growing political clarity around digital assets. According to data from Finery Markets, institutional OTC trading volume surged by 106% in 2024 alone—a trend analysts attribute to increased participation from hedge funds, pension funds, and corporate treasuries.
The rise of regulated financial instruments like ETFs has lowered entry barriers, while geopolitical shifts—including election outcomes in major economies—have boosted investor confidence in crypto as a strategic asset class.
Matt Ballensweig, Head of Trading at BitGo, emphasized the company’s long-term vision:
“After multiple market cycles and deep engagement with institutional needs, we’ve quietly built a truly fit-for-purpose crypto trading platform. Now, we’re confident we can deliver what other brokers simply can’t—seamless execution backed by trusted custody.”
By integrating its OTC services with the BitGo Go Network—a real-time settlement layer—clients benefit from atomic settlement where assets are only released upon successful trade confirmation. This eliminates settlement risk and ensures that digital holdings remain protected under qualified custody until finalization.
Preparing for IPO: Strategic Moves in a Competitive Landscape
As speculation mounts over a potential 2025 IPO, BitGo’s latest expansion appears strategically timed to strengthen its valuation and investor appeal. Currently managing over $100 billion in assets under custody, the firm is reportedly in discussions with several investment banks to explore public listing options.
Although no final decision has been made, industry insiders suggest that going public could unlock new growth avenues, including broader capital access and enhanced brand credibility among traditional finance players.
BitGo’s last private valuation stood at $1.75 billion following its Series C round in 2023. With the launch of its OTC desk, the company is clearly positioning itself not just as a custodian—but as a full-stack institutional financial services provider.
It’s entering this phase amid rising competition from other crypto-native firms eyeing public markets. Per Bitwise’s 2025 outlook report, at least five major crypto unicorns are expected to pursue IPOs this year, including:
- Circle, issuer of the USD Coin (USDC) stablecoin
- Figure, a blockchain-powered fintech innovator
- Kraken, one of the longest-standing cryptocurrency exchanges
Other notable names like Gemini and Bullish have also signaled IPO intentions, indicating a broader trend toward mainstream integration within the digital asset sector.
Building a Foundation for Long-Term Market Leadership
BitGo’s entry into the OTC space isn’t merely an incremental product addition—it’s a foundational step toward becoming a dominant player in institutional crypto finance. By combining deep liquidity, regulatory compliance, insured custody, and capital-efficient products, BitGo offers a holistic solution that meets the evolving demands of professional investors.
As global markets continue embracing digital assets, compliance and security will remain top priorities. BitGo’s vertically integrated model—where trading never compromises custody standards—sets it apart in an industry where trust is paramount.
With increasing adoption from traditional financial institutions and growing momentum toward public listings across the crypto ecosystem, BitGo is well-positioned to capitalize on both market demand and investor sentiment in 2025.
👉 See how next-generation financial platforms are redefining institutional access to digital assets.
Frequently Asked Questions (FAQ)
Q: What is an OTC trading desk?
A: An over-the-counter (OTC) trading desk facilitates direct trades between two parties without using a public exchange. It’s ideal for large-volume transactions that could impact market prices if executed on open markets.
Q: Why do institutions prefer OTC trading?
A: Institutions use OTC desks to avoid slippage, maintain privacy, access illiquid assets, and execute complex or high-value trades efficiently—all while minimizing market disruption.
Q: How does BitGo protect client assets during OTC trades?
A: Through its Qualified Custody framework, client funds remain secured under regulated custody until settlement is complete via the Go Network, significantly reducing counterparty risk.
Q: Is BitGo planning an IPO in 2025?
A: While not yet confirmed, multiple reports indicate BitGo is exploring an IPO in late 2025. The company is reportedly in talks with investment banks but has not made a final decision.
Q: Which digital assets does BitGo support on its OTC desk?
A: The platform supports over 250 digital assets, including Bitcoin, Ethereum, altcoins, DeFi tokens, and select derivatives—catering to diverse investment strategies.
Q: How does BitGo’s insurance coverage compare to competitors?
A: With $250 million in insurance protection, BitGo offers one of the strongest safeguards in the industry—providing clients with enhanced confidence in asset security.
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