BitGo Launches OTC Trading Desk Amid Rumors of Late 2025 IPO

BitGo, a prominent crypto custody services provider, has launched a global over-the-counter (OTC) trading desk for digital assets, as the company reportedly prepares for an initial public offering (IPO) sometime in late 2025. The new OTC desk, which was announced on February 18, offers a comprehensive suite of services, including spot and derivatives trading, lending, and yield-generating products across more than 250 digital assets.

The platform, which integrates numerous liquidity sources, including major exchanges, aims to cater to institutional investors with a full-service trading experience. BitGo’s managing director, Matt Ballensweig, emphasized that the desk allows clients to execute trades across spot, derivatives, and lending while keeping their assets securely protected in qualified custody until settlement. The platform also features $250 million in insurance coverage, providing further security for its users.

Institutional demand for OTC trading has surged in recent years, with trading volumes increasing by a staggering 106% in 2024, according to OTC infrastructure firm Finery Markets. This growth has been attributed to various factors, including the election of US President Donald Trump and increasing interest in US spot crypto exchange-traded funds (ETFs).

BitGo’s new offering is designed to serve venture capitalists, hedge funds, and other institutional investors by providing the ability to buy and sell locked layer-1 tokens. This service expands BitGo’s reach beyond its core crypto custody and lending services, positioning the company as a one-stop shop for institutions involved in digital assets.

In addition to the OTC desk, BitGo launched a global version of its digital asset solutions for retail investors in December 2024. The new offering mirrors the functionality of traditional crypto exchange platforms, including services such as trading, staking, and wallet management.

The timing of BitGo’s expansion into OTC trading comes amid reports that the company is in talks with investment banks about a potential public listing. According to a February 11 Bloomberg report, BitGo is considering an IPO in the second half of 2025. However, discussions are still ongoing, and no final decision has been made regarding the launch.

BitGo, which offers regulated crypto custody, lending, and infrastructure services, claims to manage $100 billion in assets under custody. If it moves forward with an IPO, it could join a growing list of crypto companies eyeing the public equity markets in 2025.

Notably, Bitwise, the crypto ETF issuer, predicted in December 2024 that at least five major crypto unicorns are likely to go public in 2025. Among those expected to make the leap are stablecoin issuer Circle, crypto exchanges Kraken and Figure, crypto bank Anchorage Digital, and blockchain analytics firm Chainalysis.

BitGo’s potential IPO would follow in the footsteps of Coinbase, which became the first major crypto firm to go public in the US in 2021 by listing its shares on the Nasdaq. The success of Coinbase’s listing has set the stage for other prominent players in the crypto space to explore public offerings as the industry continues to mature.