BitGo Expands Support for Institutions: Launches Crypto OTC Trading Desk

BitGo, known for offering crypto custody solutions, has expanded its services by announcing yesterday (Tuesday) the launch of an over-the-counter (OTC) trading desk specifically targeting institutions to trade cryptocurrencies.

The Stealth Platform Comes to Light

Interestingly, the platform revealed that it has been operating the OTC desk in stealth since early 2024 and has already processed “billions in trading volume.” It has also built a lending book of over $150 million.

We're formally unveiling @BitGo's OTC Trading desk, which offers 24/7 spot, derivative and lending liquidity to all of our institutional clients globally.

Our edge: Trade while your assets remain in segregated qualified custody and post-trade settle. No "prefunding" required. https://t.co/CyEKm2TTo2

— Matt Ballensweig (@mtballensweig) February 18, 2025

The OTC desk offers around-the-clock service and lists more than 250 digital assets. It also provides trading services with both spot and derivative instruments, along with lending services and yield-generating products.

The launch of the OTC desk came at a time when institutional demand for cryptocurrencies was rising rapidly. According to Finery Markets, crypto OTC volume surged by 106 per cent in 2024, primarily due to the US Presidential election and the increasing demand for spot crypto exchange-traded products.

“Having seen many market cycles and understanding what works and what doesn’t, we’ve been quietly building a proper institutional crypto trading desk, and now we’re confident we offer what other brokers can't,” said BitGo’s Managing Director and Head of Trading, Matt Ballensweig, who is leading operations at the OTC desk.

“Our integrated OTC offering gives clients the ability to execute with a full-service desk across spot, derivatives, and lending, all while their assets remain protected in qualified custody until the time of settlement,” he added.

Incoming IPO?

Meanwhile, a recent Bloomberg report revealed that BitGo is considering going public with an initial public offering (IPO) in the second half of 2025. Although the company is in talks with potential advisors, it has yet to make a decision on a public listing. BitGo, however, has not made any official comments on the matter.

In 2021, billionaire Michael Novogratz’s crypto firm Galaxy Digital agreed to purchase BitGo for $1.2 billion. However, that deal collapsed when Galaxy terminated the acquisition the following year. Later, in 2023, the platform raised $100 million at a valuation of $1.75 billion and is backed by firms like Goldman Sachs, DRW Holdings, Redpoint Ventures, and Valor Equity Partners.