Key facts
- BitGo and OTC Markets Group are partnering to offer digital asset securities trading and custody to broker-dealers.
- The partnership will leverage OTC Link ATS, an SEC-regulated alternative trading system.
- BitGo Bank & Trust will serve as the qualified custodian for these digital asset securities.
- The initiative aims to integrate tokenized asset trading into existing broker-dealer market infrastructure.
- BitGo recently received federal charter approval to operate as a national trust bank.
Digital asset infrastructure provider BitGo and OTC Markets Group, operator of regulated over-the-counter securities markets, are planning a partnership to enhance trading and custody services for broker-dealers. This collaboration is designed to expand institutional access to tokenized securities by utilizing existing market infrastructure.
The proposed alliance is set to serve over 150 broker-dealers through OTC Link ATS, an alternative trading system overseen by the U.S. Securities and Exchange Commission. If realized, this initiative would allow participating broker-dealers to quote, trade, and settle digital asset securities using the same electronic trading platforms currently employed for over-the-counter and U.S. equity markets.
Under the proposed framework, BitGo Bank & Trust will function as the qualified custodian, with settlements facilitated by BitGo’s Go Network. Initially, the system will support digital asset securities, with provisions for future expansion to other tokenized assets and commodities as regulatory landscapes evolve.
This development occurs amidst increasing exploration of tokenized real-world assets by traditional financial institutions and evolving digital asset market regulations in the U.S. In December, BitGo secured final approval from the U.S. Office of the Comptroller of the Currency to operate as a federally chartered national trust bank, enabling it to offer qualified custody services under federal banking oversight.
Investors responded positively to the news, with OTC Markets Group's stock price increasing by approximately 2.7% to $53.50 per share by midday Wednesday on limited trading volume. The integration of digital asset trading and custody into existing frameworks is expected to lower operational hurdles for broker-dealers seeking to offer tokenized securities, potentially avoiding the need for entirely new crypto-native systems.
Analysts at Bernstein have projected that the market for tokenized real-world assets could grow to as much as $4 trillion by 2030, driven by broader adoption across various financial asset classes. This announcement follows similar initiatives by firms like Securitize and Cantor Fitzgerald in bringing tokenization to capital markets.