BitGo Launches Global OTC Trading Desk Amidst Crypto Resurgence

Crypto custody firm BitGo Inc. has launched a global over-the-counter (OTC) trading desk for digital assets, as part of its plans to go public. The new desk will offer institutional investors spot and options trading, as well as lending to facilitate margin trading. The service is available in the US, Hong Kong, and several Middle Eastern countries.

The expansion comes amidst a growing demand for cryptocurrencies from institutional investors. BitGo, one of the largest US-based custodians for digital assets, has been serving selected clients with billions of dollars in trading volume and a lending book over $100 million since early last year. The company is also reportedly considering an initial public offering (IPO).

The launch of the OTC trading desk is a strategic move by BitGo to tap into the capital markets and trading sector. Matt Ballensweig, head of trading at BitGo, stated that this expansion is a natural extension of the company's goals. The desk aims to provide investors with direct trading and swapping of assets without relying on third-party custody providers.

The crypto market has witnessed a significant drop in trading volumes following the collapse of crypto exchange FTX in 2022 and the failure of major lenders like Genesis, BlockFi, and Celsius Network. This has led to fewer options for leverage during the current crypto bull market, which has been partly driven by US President Donald Trump's pro-crypto stance.