BitGo will launch global over-the-counter trading platform

What’s new? Crypto custody company BitGo has announced the launch of its comprehensive over-the-counter trading desk that serves customers in all major time zones. The platform has been operating in stealth mode since the beginning of 2024. In that time, it has processed billions of trade volumes and built a credit portfolio worth more than $150 million.

According to the press release, “the explosive demand uptick since launch proves decisive institutional demand for bespoke trading solutions integrated with qualified custody.”

What else is known? The platform offers credit services, income products, and spot and derivative trading across 250 assets. These are all integrated with the company’s regulated qualified custody, which also means that everything is available in one place. BitGo has also enabled the settlement of trades through Go Network, a settlement infrastructure that it launched in 2023. This allows customers to receive cryptocurrency or cash instantly — no need to send funds to another market maker.

At the same time, the OTC department has access to “dozens of liquidity sources including both exchanges and LPs,” the team said. So they can provide competitive pricing and dynamic order types. As for venture capital and hedge fund clients, they can buy and sell locked/unlocked L1 tokens.

The management positions are held by Matt Ballensweig, formerly of Genesis and Bridgewater, and Stefan Von Haenisch, formerly of OSL Group. Ballensweig, Managing Director and Head of Trading, commented:

“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.”

The team uses the BitGo Go Network to settle assets simultaneously, “minimizing the highly-prevalent prefunding risk that underlies our market structure,” he added.

In September 2024, BitGo unveiled its own USDS stablecoin with a dollar peg, which is used to reward liquidity provision. USDS is backed by assets such as short-term US Treasury bills, overnight repurchase agreements, and cash.