BitGo Expands into Retail Market with New Trading Platform

After more than a decade of serving institutional clients, BitGo is now turning its attention to retail investors. The California-based digital asset firm, known for its focus on security and custody solutions, announced on December 2 that it will be launching a global platform designed to cater to retail clients. This new platform will offer services similar to those found on crypto exchanges, including trading, staking, and wallet solutions. Additionally, users will have access to BitGo’s regulated custody, with options for both cold storage and self-custody.

BitGo’s expansion into the retail market marks a significant shift in its strategy. The company, which has built a reputation for serving institutional clients such as Nike and over 150 crypto exchanges, is now aiming to capture a broader audience. With more than 1,500 clients across 50 countries, BitGo’s move comes as competition in the institutional market intensifies, with new entrants increasingly targeting the needs of large-scale investors.

Addressing Gaps in the Retail Crypto Market

Retail investors often face challenges related to the security of their assets, with concerns about custody and exchange reliability being prominent. BitGo’s spokesperson noted that these issues have hindered the growth of the retail market, and the company aims to fill this gap by providing reliable and secure custody services. By offering these solutions, BitGo hopes to attract retail clients who are seeking safer ways to manage their crypto assets.

The global crypto user base is expected to reach one billion by the end of 2024, presenting a significant opportunity for BitGo to tap into a growing market. In addition to offering traditional exchange-like services, the platform will also integrate advanced features for secure storage and self-custody of digital assets, which is particularly appealing to retail investors concerned about the risks associated with centralization.

Expanding Business Model

BitGo’s recent move into the retail sector follows a series of strategic diversifications aimed at broadening its service offerings. In September 2024, the company announced plans to launch a stablecoin pegged to the U.S. dollar. This will further complement BitGo’s existing services and provide more options for both institutional and retail clients seeking exposure to stable digital assets.

The company also revealed plans to launch a regulated platform designed for Web3 protocols. This platform will offer custody services for native tokens and support the distribution of tokens to investors, employees, and other recipients. This strategic move is aimed at addressing the unique needs of crypto-native organizations, providing them with a more efficient and secure way to manage token distributions.

Strong Financial Backing and Growth

BitGo’s expansion into the retail space is supported by significant financial backing. In August 2023, the company’s valuation hit $1.75 billion after securing $100 million in Series C funding from investors in both the United States and Asia. These investors include prominent names such as investment bank Goldman Sachs, DRW Holdings, and Galaxy Digital Ventures.

BitGo’s growth is not limited to retail and Web3 services. The company continues to provide custody solutions for major financial products like Bitcoin exchange-traded funds (ETFs) in the U.S., including cold storage services for issuers such as Valkyrie, Hashdex, and 21Shares.

Conclusion

With its strong track record in institutional custody services, BitGo is now positioning itself as a key player in the retail crypto market. By addressing the security concerns that have traditionally plagued retail investors, BitGo is aiming to bridge the gap between institutional-grade services and the growing demand for reliable solutions in the retail sector. As the number of global crypto users continues to rise, BitGo’s diversified approach and secure offerings could well position it to capture a significant share of this expanding market.