BitGo Expands Institutional OTC Platform with Enhanced Derivatives Trading

Key Takeaways:

• BitGo expands its OTC platform to support enhanced derivatives trading

• Derivatives are executed bilaterally with BitGo's trading entities delivering greater counterparty clarity, control and customization

• BitGo's OTC offering enables institutions to execute sophisticated strategies within an institutional framework to hedge risk, generate income, and express direction views

For years, institutional participation in digital asset markets meant buying and holding. As markets mature and capital becomes more active, institutions are looking to do more, and the platforms supporting them need to meet those demands accordingly.

BitGo's latest expansion of its OTC desk is a direct response to that shift and changes how institutions can engage with digital assets.

Introducing OTC Derivatives

BitGo has expanded its institutional OTC trading platform to support derivatives trading, enabling clients to execute more sophisticated trading strategies without compromising on execution, security, or control.

Clients can trade bilateral OTC derivatives through BitGo's trading entity while keeping collateral in a separately regulated BitGo custody entity. This separation allows clients to deploy assets while maintaining security, governance, and asset protection standards they require.

Why Bilateral Execution Matters

A key differentiator of BitGo's offering is bilateral execution through its OTC desk. Rather than routing trades through exchanges or fragmented liquidity venues, clients can transact directly with BitGo, which provides several advantages such as as:

• Counterparty clarity: clients know exactly who they are facing, simplifying risk management

• Custom structuring: clients can tailor derivatives strategies to specific risk and return objectives

• Discretion: clients can rest assured knowing that BitGo's OTC desk has experience handling large or sensitive transactions

• Seamless integration with custody and the BitGo ecosystem: collateral can remain within BitGo's regulated custody environment and clients can still access the rest of BitGo's services such as electronic trading, financing, and staking

For institutions deploying significant capital, how a trade is executed is just as important as where it's traded. BitGo's bilateral OTC execution gives them greater control, predictability, and operational simplicity.

Building on a Strong OTC Foundation

The introduction of OTC derivatives builds on the success of BitGo's OTC desk launched in February 2025. The platform has supported a growing institutional client base with reliable spot execution and financing solutions.

To support the derivatives offering, Tim Kan, formerly Head of Sales Trading at QCP Capital, joins as Director of Derivatives Trading. “BitGo has built an institutional OTC platform that prioritizes security, reliability, and disciplined execution,” said Kan. “As institutional participation in digital asset markets continues to evolve, demand for derivatives strategies that can be executed in conjunction with separately regulated custody solutions is increasing. I’m excited to join the team as BitGo expands its derivatives capabilities and continues to deliver customized strategies at scale while maintaining rigorous risk controls.”

Enabling a Broader Set of Institutional Outcomes

BitGo's derivatives offering is designed to support institutions such as hedge funds, digital asset treasury companies, miners, lenders, and trading firms by offering:

• Income generation on existing holdings

• Hedging against market volatility

• Directional exposure with defined risk

By integrating derivatives trading into existing OTC and prime services, BitGo streamlines digital asset operations bringing trading, collateral management, and settlement into a single, cohesive system.

Entering the Next Phase

If the first phase of institutional crypto adoption was about access and safekeeping, the next phase is about utilization. Putting assets to work in a controlled, capital-efficient way will be a differentiator for institutions in the months and years to come.

By combining deep liquidity, derivatives expertise, and bilateral OTC execution, BitGo has built a full-service institutional platform, one designed not just for holding assets but actively managing.

For institutions ready to move beyond passive exposure, connect with the BitGo team to learn how the OTC desk can help integrate derivatives into trading and treasury strategies.