(Bloomberg) -- Crypto custody firm BitGo Inc. has launched a global over-the-counter trading desk for digital assets amid its plan to go public.
The expansion comes as demand for cryptocurrencies from institutional investors such as hedge funds increases with prices rising. BitGo, one of the largest US-based custodians that help investors hold their digital assets, is considering an initial public offering, people familiar with the matter said earlier this month.
The OTC desk will provide institutional investors with spot and options trading services as well as lending to facilitate margin trading, Palo Alto, California-based BitGo said in a statement Tuesday. The firm has started serving selected clients since early last year with billions of dollars in trading volume and a lending book of over $100 million. The trading desk is available in other jurisdictions besides the US, including Hong Kong and countries in the Middle East region.
Trading activities in digital assets plummeted after an industry-wide meltdown in the wake of the implosion of crypto exchange FTX in 2022. The subsequent collapse of major crypto lenders like Genesis, BlockFi and Celsius Network has left investors with fewer options for leverage during the current crypto bull market that has been propelled in part by the US President Donald Trump’s pro-crypto stance.
BitGo aims to leverage its custodian network in which investors can trade without tapping into third-party custody providers and directly swap assets there. “This expansion into capital markets and trading is just a natural extension of where we want to be,” said Matt Ballensweig, head of trading at BitGo.
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