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BitGo has launched a global over-the-counter (OTC) trading desk for digital assets as it edges towards a potential initial public listing (IPO).
The firm’s new OTC desk will offer institutional clients spot and options trading services, as well as lending to facilitate margin trading.
This desk is available beyond the US, including Hong Kong and the Middle East, offering global institutional investors with more avenues to trade digital assets.
BitGo also aims to capitalize on its existing custodian network, allowing investors to trade directly without relying on third-party custody providers.
“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 Matt Ballensweig, Managing Director, Head of Trading.
“Our integrated OTC offering gives clients the ability to execute with a full-service desk across spot, derivatives, and lending, all while their assets stay 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.”
Key features of the new desk include the ability to trade spot, derivatives, lending, and yield-generating products all in one place, as well as offering access to dozens of liquidity sources including both exchanges and LPs to provide clients with highly competitive pricing and dynamic order types.
Additionally, users can access bespoke locked token markets, providing its VC and hedge fund clients the opportunity to buy and sell locked/unvested L1 tokens. Clients will not leave the security of BitGo’s regulated custody offering while trading and will be protected with $250M in insurance coverage.
BitGo's settlement feature, Go Network, further allows clients to receive proceeds in crypto or cash instantly, eliminating the need to first transfer funds on-chain to another market maker.
Last month, the Joint Official Liquidators (JOLs) of FTX Digital Markets opened the "Payment Details" stage, marking a pivotal step in the distribution of funds to claimants. Individual customers are now set to receive their distributions via BitGo, offering some closure after the collapse of the exchange in late 2022.
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