Blab Crypto
BitGo and OTC Markets Group Partner to Open Regulated Digital Asset Path for Broker-Dealers
In a move that could reshape institutional crypto trading, BitGo Holdings, Inc. and OTC Markets Group unveiled a partnership that gives over 150 registered broker‑dealers a regulated route to buy and sell digital assets via OTC Link’s alternative trading system (ATS).
The collaboration stitches together BitGo’s regulated custody and settlement platform, BitGo Prime, with OTC Link’s well‑known trading venue, creating a single, compliant pathway for broker‑dealers to navigate the crypto market.
The alliance tackles a longstanding gap for institutional participants: a unified, compliant channel to transact crypto while upholding the custody and settlement standards broker‑dealers must maintain. Recent SEC staff guidance issued in May 2025 now allows broker‑dealers to hold and trade crypto for clients, and the Trading and Markets staff are actively charting routes for crypto trading on regulated venues such as ATSs and national securities exchanges.
By fusing BitGo’s custody and settlement capabilities with OTC Link’s trading infrastructure, the partnership offers broker‑dealers a “gold‑standard” for reliable, efficient, and compliant markets.
Timing is key, as regulatory clarity is sharpening. The SEC’s FAQs on crypto asset activities provide guidance for broker‑dealers and transfer agents, while staff statements on crypto custody clarify how broker‑dealers may manage holdings. OTC Link ATS, already a SEC‑regulated venue used by thousands of broker‑dealers for over‑the‑counter securities, now adds digital assets, giving institutions a familiar, regulated framework to step into the crypto arena.
Access through OTC Link is poised to reshape broker‑dealer engagement in several ways. First, the integration delivers a streamlined custody and settlement experience. BitGo Prime’s multi‑signature custody model and its Go Network off‑chain settlement ledger enable broker‑dealers to settle trades bilaterally on a delivery‑vs‑payment (DVP) basis around the clock, eliminating the need for on‑chain transfers or wire transfers.
Second, the partnership provides a recognized trading venue that broker‑dealers already use for traditional securities, trimming the learning curve and compliance overhead that typically accompany new platforms.
Execution quality remains a critical differentiator in crypto. A recent BitGo Prime analysis highlighted significant fee‑inclusive execution cost differences across venues. Trading on individual exchanges—primarily designed for retail flow—depends on a single venue’s order book depth. In contrast, BitGo Prime connects to multiple exchanges, liquidity providers, and market makers simultaneously, producing better fills for clients. During April’s market volatility, the report noted that execution cost gaps widened, underscoring that liquidity and market resilience vary across digital asset trading venues.
Crypto market makers, largely unregulated, can shift liquidity based on profit‑sharing agreements and risk appetite. In volatile periods, some may withdraw liquidity to avoid holding positions, widening execution cost gaps further. As more traditional financial institutions enter digital assets, execution quality—both in pricing and settlement reliability—will become as important as custody, regulation, and access.
Looking ahead, further improvements in digital asset market infrastructure are essential to support broader institutional participation at scale. Counterparty risk remains a central concern for every trade. BitGo’s Go Network, an off‑chain settlement ledger, allows accounts to settle bilaterally on a DVP basis 24/7, reducing the need for on‑chain transfers or wire transfers and enhancing settlement efficiency while mitigating counterparty exposure.
In sum, the BitGo–OTC Markets Group alliance delivers a regulated, efficient pathway for broker‑dealers to trade digital assets. By leveraging BitGo’s custody and settlement expertise alongside OTC Link’s established trading venue, the partnership meets the evolving regulatory landscape. As the SEC continues to clarify rules for broker‑dealers and market makers adapt to new execution quality expectations, the alliance positions participating firms to capture institutional demand for crypto trading while maintaining compliance and operational efficiency.
The collaboration stitches together BitGo’s regulated custody and settlement platform, BitGo Prime, with OTC Link’s well‑known trading venue, creating a single, compliant pathway for broker‑dealers to navigate the crypto market.
The alliance tackles a longstanding gap for institutional participants: a unified, compliant channel to transact crypto while upholding the custody and settlement standards broker‑dealers must maintain. Recent SEC staff guidance issued in May 2025 now allows broker‑dealers to hold and trade crypto for clients, and the Trading and Markets staff are actively charting routes for crypto trading on regulated venues such as ATSs and national securities exchanges.
By fusing BitGo’s custody and settlement capabilities with OTC Link’s trading infrastructure, the partnership offers broker‑dealers a “gold‑standard” for reliable, efficient, and compliant markets.
Timing is key, as regulatory clarity is sharpening. The SEC’s FAQs on crypto asset activities provide guidance for broker‑dealers and transfer agents, while staff statements on crypto custody clarify how broker‑dealers may manage holdings. OTC Link ATS, already a SEC‑regulated venue used by thousands of broker‑dealers for over‑the‑counter securities, now adds digital assets, giving institutions a familiar, regulated framework to step into the crypto arena.
Access through OTC Link is poised to reshape broker‑dealer engagement in several ways. First, the integration delivers a streamlined custody and settlement experience. BitGo Prime’s multi‑signature custody model and its Go Network off‑chain settlement ledger enable broker‑dealers to settle trades bilaterally on a delivery‑vs‑payment (DVP) basis around the clock, eliminating the need for on‑chain transfers or wire transfers.
Second, the partnership provides a recognized trading venue that broker‑dealers already use for traditional securities, trimming the learning curve and compliance overhead that typically accompany new platforms.
Execution quality remains a critical differentiator in crypto. A recent BitGo Prime analysis highlighted significant fee‑inclusive execution cost differences across venues. Trading on individual exchanges—primarily designed for retail flow—depends on a single venue’s order book depth. In contrast, BitGo Prime connects to multiple exchanges, liquidity providers, and market makers simultaneously, producing better fills for clients. During April’s market volatility, the report noted that execution cost gaps widened, underscoring that liquidity and market resilience vary across digital asset trading venues.
Crypto market makers, largely unregulated, can shift liquidity based on profit‑sharing agreements and risk appetite. In volatile periods, some may withdraw liquidity to avoid holding positions, widening execution cost gaps further. As more traditional financial institutions enter digital assets, execution quality—both in pricing and settlement reliability—will become as important as custody, regulation, and access.
Looking ahead, further improvements in digital asset market infrastructure are essential to support broader institutional participation at scale. Counterparty risk remains a central concern for every trade. BitGo’s Go Network, an off‑chain settlement ledger, allows accounts to settle bilaterally on a DVP basis 24/7, reducing the need for on‑chain transfers or wire transfers and enhancing settlement efficiency while mitigating counterparty exposure.
In sum, the BitGo–OTC Markets Group alliance delivers a regulated, efficient pathway for broker‑dealers to trade digital assets. By leveraging BitGo’s custody and settlement expertise alongside OTC Link’s established trading venue, the partnership meets the evolving regulatory landscape. As the SEC continues to clarify rules for broker‑dealers and market makers adapt to new execution quality expectations, the alliance positions participating firms to capture institutional demand for crypto trading while maintaining compliance and operational efficiency.
