BitGo Expands Into OTC Trading With Integrated Custody and Liquidity Services

Digital asset custody provider BitGo has launched its over-the-counter (OTC) trading desk, integrating spot and derivatives trading, lending, and settlement solutions with its regulated custody services. The trading desk has been operational since early 2024 and has reportedly processed significant trading volumes while maintaining a lending portfolio exceeding $150 million.

The initiative is led by Matt Ballensweig, who has previously worked at Genesis and Bridgewater, and Stefan Von Haenisch, formerly with OSL Group. The trading desk operates continuously across multiple time zones and offers access to over 250 digital assets. One of its key features is the ability to execute trades without requiring assets to be moved out of BitGo’s custody until settlement, a structure aimed at addressing risks associated with prefunding.

According to Ballensweig, BitGo’s trading desk was developed based on market experience, aiming to address gaps in the institutional crypto trading sector. “Our integrated OTC offering gives clients the ability to execute across spot, derivatives, and lending, while their assets remain in qualified custody until settlement,” he stated. The firm also utilizes its proprietary Go Network for trade settlement, allowing transactions to be completed without the need for on-chain fund transfers to third parties.

Beyond standard OTC trading, BitGo facilitates transactions involving locked or unvested Layer 1 tokens, a feature designed for venture capital firms and hedge funds engaged in early-stage crypto investments. Additionally, the firm provides access to multiple liquidity sources, including exchanges and liquidity providers, to support a variety of trading strategies and order types.

BitGo’s entry into OTC trading aligns with its broader strategy of integrating custody with trading and settlement infrastructure. The company has positioned itself as an independent custodian serving institutional clients across various jurisdictions. The launch of its trading desk expands its role within the digital asset ecosystem, with further developments expected as it refines its services.