BitGo Expands with OTC Trading Desk Amid IPO Speculation

BitGo, a well-known crypto custody firm, has officially launched a global over-the-counter (OTC) trading desk, expanding its footprint in the digital asset market. The move comes at a pivotal time, as the firm is reportedly gearing up for an initial public offering (IPO) later this year.

According to a Feb. 18 announcement, BitGo’s OTC desk will provide access to over 250 digital assets, offering a comprehensive suite of trading services, including spot and derivatives trading, lending, and yield-generating products. The firm highlighted that the platform integrates with numerous liquidity sources, including major exchanges, allowing institutional investors to execute high-value trades seamlessly.

Matt Ballensweig, BitGo’s Managing Director, emphasized the security aspect of the new service, stating that the desk allows clients to trade while keeping their assets protected in qualified custody until settlement. Additionally, the platform boasts a $250 million insurance policy, providing an extra layer of security for institutional clients.

Soaring Demand for Institutional Crypto Trading

BitGo’s latest venture aligns with a broader industry trend—institutional OTC crypto trading volumes have surged by 106% in 2024, driven in part by the U.S. presidential election and increasing demand for spot crypto ETFs, according to OTC infrastructure firm Finery Markets.

The launch of this trading desk follows BitGo’s December 2023 expansion, which introduced a global digital asset platform for retail investors, offering trading, staking, and wallet services. This move suggested the company’s ambition to compete more directly with major crypto exchanges while maintaining its core institutional focus.

Meanwhile, speculation around BitGo’s public debut continues to build. A Feb. 11 Bloomberg report revealed that the firm has been in discussions with investment banks regarding a potential IPO in the second half of 2025. However, sources indicate that no final decision has been made, and plans remain subject to change.

Crypto Firms Eye Public Markets

If BitGo proceeds with an IPO, it would join a growing list of crypto unicorns eyeing public markets. Research from Bitwise predicts that at least five major crypto firms—including Circle—will go public in 2025.

The precedent was set in 2021, when Coinbase became the first major U.S. crypto company to list on Nasdaq. Now, as regulatory clarity improves and institutional adoption rises, BitGo’s entry into the public equity markets could mark another milestone in crypto’s mainstream integration.