Digital asset infrastructure provider BitGo and OTC Markets Group announced Wednesday a partnership plan to develop digital asset trading and custody infrastructure for broker-dealers. The proposed alliance targets more than 150 broker-dealers using OTC Link ATS, an alternative trading system regulated by the US Securities and Exchange Commission. The partnership aims to expand institutional access to tokenized securities through existing market infrastructure, allowing participating broker-dealers to quote, trade and settle digital asset securities using their current electronic trading systems.
BitGo and OTC Markets Announce Partnership Framework
Under the proposal, BitGo Bank & Trust would act as the qualified custodian, while settlement would be facilitated through BitGo's Go Network. The proposed framework is initially intended to support digital asset securities, with the potential to expand to tokenized assets and commodities as regulatory frameworks evolve. OTC Markets Group operates regulated over-the-counter securities markets.
BitGo Received Federal Banking Charter in December
In December, BitGo received final approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank. This approval allows BitGo to provide qualified custody services under federal banking oversight.
OTC Markets Stock Rose 2.7% Following Announcement
Investors lifted OTC Markets Group's stock price roughly 2.7% by midday on Wednesday, to $53.50 a share on thin volume.
Bernstein Projects Tokenized Assets Could Reach $4 Trillion by 2030
The announcement comes as traditional financial institutions increasingly explore tokenized versions of real-world assets. Analysts at Bernstein have projected that the value of tokenized real-world assets could reach up to $4 trillion by 2030, driven by broader adoption across equities, commodities, and other financial assets. Bernstein analysts identified tokenization and prediction markets as the next assets "battleground" for exchanges and brokers.
The announcement also follows similar efforts by companies including Securitize and Cantor Fitzgerald to bring tokenization to capital markets, including initial public offerings and follow-on equity offerings.
FAQ
What did BitGo and OTC Markets Group announce on Wednesday?
BitGo and OTC Markets Group announced Wednesday a partnership plan to develop digital asset trading and custody infrastructure for broker-dealers. The proposed alliance will serve more than 150 broker-dealers using OTC Link ATS, an alternative trading system regulated by the US Securities and Exchange Commission.
What regulatory approval did BitGo receive in December?
In December, BitGo received final approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank, allowing it to provide qualified custody services under federal banking oversight.
How did OTC Markets Group's stock price react to the announcement?
Investors lifted OTC Markets Group's stock price roughly 2.7% by midday on Wednesday, to $53.50 a share on thin volume.
