BitGo Enhances Institutional OTC Platform to Include Derivatives Trading

BitGo has broadened its institutional over-the-counter (OTC) trading platform to include derivatives trading, enhancing its offerings for sophisticated digital asset strategies. This expansion enables institutions to directly trade OTC derivatives while ensuring client assets are held in regulated custody. The move reflects the growing maturity of institutional interest in cryptocurrency markets.

Key Takeaways

BitGo has expanded its OTC trading platform to offer derivatives trading.
Institutions can trade while keeping their assets secured in regulated custody.
This move addresses institutional needs for sophisticated trading strategies and risk management.
Tim Kan has been appointed as Director of Derivatives Trading to steer this expansion.
The platform is part of BitGo’s broader strategy to prepare for a U.S. IPO, aiming for a valuation of up to $1.96 billion.

BitGo, Global OTC Trading Desk, Trading, IPO, USA

Overview of the Expansion

BitGo has recently expanded its institutional over-the-counter (OTC) trading platform to incorporate derivatives trading. This initiative aims to create a comprehensive, regulated infrastructure for complex digital asset strategies.

With this addition, institutions can now engage in OTC derivatives trading directly with a BitGo trading entity while ensuring their collateral is stored in a separately regulated custody setting.

As the participation of institutions in cryptocurrency markets grows, there’s a notable increased demand for sophisticated trading strategies that work hand-in-hand with effective risk management and custody protections.

Separation of Trading and Custody

The updated offering allows institutions to access OTC derivatives trading, all while keeping their assets separated within BitGo’s regulated custody framework.

This setup is designed to alleviate persistent concerns related to counterparty risk and operational controls, which are particularly crucial for hedge funds, treasury managers, lenders, and proprietary trading firms.

The derivatives capabilities are seamlessly integrated with BitGo’s existing prime services, which include electronic trading, collateral management, and settlement. By embedding derivatives into this structure, BitGo seeks to maximize capital efficiency without sacrificing security or compliance.

New Leadership for Derivatives Growth

Alongside the platform's expansion, BitGo has appointed Tim Kan as the new Director of Derivatives Trading. Kan brings valuable experience from QCP Capital, where he was Head of Sales Trading and specialized in institutional derivatives strategies.

In his role at BitGo, Kan will lead the OTC derivatives team and oversee further developments within the platform. He noted, “As institutional interest in digital asset markets evolves, the need for derivatives strategies that can work alongside regulated custody solutions is on the rise.” He emphasized the intention to provide scalable customized strategies while maintaining rigorous risk controls.

Growing Momentum at the OTC Desk

Launched in February 2025, BitGo’s OTC trading desk has quickly established a strong client base among institutional investors. Initially focusing on spot trading and financing solutions, the desk now stands out as a regulated execution venue that offers secure settlement alongside custody.

With the introduction of derivatives trading, clients can now engage in yield generation, hedging, and directional exposure through bilateral trades with BitGo’s OTC desk.

The platform accommodates a wide variety of digital assets and collateral types, which allows for customized strategies that cater to the unique profiles of institutional clients, including miners and digital asset treasury firms.

Institutional Infrastructure as the Market Evolves

Mike Belshe, co-founder and CEO of BitGo, shared that this expansion demonstrates a long-term commitment to building institutional-grade infrastructure. He noted, “Clients increasingly want to execute more sophisticated strategies without compromising custody, risk management, or operational integrity,” highlighting the importance of scalable systems as market engagement deepens.

This expansion also signifies BitGo's ambition to function as a full-service institutional trading and infrastructure provider, blending liquidity access, derivatives expertise, and regulated custody into a cohesive platform.

Preparing for an IPO

BitGo’s platform expansion coincides with its preparations for a potential U.S. initial public offering (IPO). The company aims for a valuation of up to $1.96 billion and is looking to raise up to $201 million by offering 11.8 million shares, priced between $15 and $17 each.

As investor interest in crypto infrastructure firms grows, BitGo’s entry into the derivatives market reflects its strategic intent to meet institutional demand across the digital asset ecosystem.