BitGo Expands Services with OTC Trading Desk Amid IPO Speculations

BitGo, a prominent crypto custodian and digital asset infrastructure provider, has launched an over-the-counter (OTC) trading desk, reinforcing its commitment to institutional clients. This development comes as speculation mounts regarding a potential initial public offering (IPO) in late 2025.

Enhancing Institutional Trading with OTC Services

The newly unveiled OTC trading desk is designed to facilitate seamless transactions for institutional investors, integrating spot and derivatives trading, lending solutions, and yield-generating products. Operating around the clock across major time zones, the platform ensures that clients can execute trades efficiently while keeping their assets safeguarded within BitGo’s insured and regulated custody framework.

The service, which has been running in stealth mode since early 2024, has already recorded billions in trading volume and built a lending book exceeding $150 million. This strong initial performance highlights BitGo’s ability to meet the increasing demand for sophisticated trading solutions among institutional investors.

Spearheading the OTC desk are industry veterans Matt Ballensweig and Stefan Von Haenisch. Ballensweig, formerly with Genesis and Bridgewater, serves as the Managing Director and Head of Trading. Commenting on the platform’s value, he stated, “Our integrated OTC offering allows clients to trade across spot, derivatives, and lending, while keeping assets securely in qualified custody until settlement.” Von Haenisch, previously with OSL Group, brings additional expertise in institutional trading and risk management.

Potential IPO on the Horizon

Alongside its service expansion, BitGo is reportedly considering an IPO, potentially in the latter half of 2025. Discussions with financial advisers are ongoing, though no formal confirmation has been made. If the IPO proceeds, BitGo would join a growing list of cryptocurrency firms seeking public listings, signaling the industry's continued push toward mainstream adoption and regulatory compliance.

Since its founding in 2013, BitGo has positioned itself as a key player in the crypto space. The company serves over 1,500 institutional clients in more than 50 countries and facilitates around 8% of all global Bitcoin transactions by value. BitGo's latest valuation stands at $1.75 billion, following a $100 million Series C funding round in 2023. Its investors include industry giants like Goldman Sachs, DRW Holdings, Redpoint Ventures, and Valor Equity Partners.

An IPO would mark a significant milestone for the company, potentially unlocking new capital to further expand its suite of financial services. The move aligns with broader industry trends, as other crypto firms, such as Gemini and Bullish Global, have also expressed intentions to go public.

Strategic Implications

The launch of BitGo’s OTC trading desk, combined with IPO speculations, underscores the company’s strategic vision for long-term growth. By integrating trading, lending, and custody services, BitGo aims to offer a comprehensive solution that meets the evolving needs of institutional investors.

As the cryptocurrency landscape continues to mature, companies like BitGo are positioning themselves to bridge the gap between digital assets and traditional financial markets. The firm’s proactive approach to regulatory compliance, security, and innovation suggests that it is well-equipped to navigate the complexities of the digital asset industry.

In summary, BitGo’s expansion into OTC trading and its potential IPO signal a transformative period for the company. With increasing institutional interest in crypto and regulatory frameworks evolving, BitGo is poised to play a pivotal role in shaping the future of digital asset infrastructure.