BitGo, a digital assets custodian, has launched a global over-the-counter trading desk offering spot and derivatives trading for crypto.
According to a February 19 announcement from the California headquartered firm, the OTC desk supports trading across more than 250 digital assets, including lending and yield-generating products.
Meanwhile, liquidity is sourced from multiple exchanges and institutional liquidity providers to offer competitive pricing and flexible order types.
The platform also caters to venture capital firms and hedge funds.
BitGo said its role as the “preferred qualified custodian to major protocols” enables it to offer VC and hedge fund clients the ability to trade locked and unvested layer-1 tokens, giving them more flexibility in managing allocations.
The OTC desk is integrated with BitGo’s in-house custody services to ensure client funds remain secure until settlement.
BitGo will also offer $250 million in insurance coverage.
Notably, the platform has been operating in “stealth mode” since early 2024 and has already processed “billion in trading volume,” BitGo said, adding that it had already built a $150 million lending book.
“The explosive demand uptick since launch proves decisive institutional demand for bespoke trading solutions integrated with qualified custody,” the announcement continued.
The new service will be led by Matt Ballensweig, formerly of Genesis, and Stefan Von Haenisch, previously at OSL Group. It will run 24/7 to cater to institutional investors worldwide.
Commenting on the official launch, Ballensweig said the integrated OTC offering gives clients access to spot, derivatives, and lending services while keeping their assets protected in qualified custody “until the time of settlement.”
“We then leverage BitGo’s Go Network to settle assets at the same time—minimizing the highly prevalent prefunding risk that underlies our market structure,” he added.
BitGo continues expansion
BitGo’s latest offering comes amid the firm’s broader expansion across both its services and market reach over the past year.
As previously reported by Invezz in November, the custodian started servicing the Asia Pacific region via its subsidiary BitGo Singapore.
The firm received a Major Payment License from the Monetary Authority of Singapore in August.
In September, it launched its wrapped Bitcoin (WBTC) on Avalanche and BNB Chain, extending support for the token beyond Ethereum.
It partnered with LayerZero to make this possible.
BitGo also pushed into retail-focused digital asset solutions in December last year with the launch of a platform specifically tailored to retail investors.
The platform allows retail traders to access BitGo’s suite of tools previously limited to institutional players.
This year, there have been talks that the company might be going public by the second quarter of 2025.
Speculation gained traction after a Bloomberg report cited insider sources who claimed BitGo wants to launch an initial public offering in the coming months.
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