BitGo Holdings (NYSE: BTGO) announced an integration with Derive Labs that allows institutional clients to access onchain derivatives markets while keeping collateral held within BitGo Bank & Trust, National Association, an Office of the Comptroller of the Currency-regulated digital asset trust bank.

The arrangement lets eligible clients trade options and perpetual futures on Derive's platform, which includes portfolio margining and electronic execution, without moving assets outside BitGo's custody framework. The model separates asset custody from trade execution, which the companies say aims to reduce exchange counterparty exposure and asset commingling risk.

"Institutional markets are built on the separation of custody and trading," said Adam Sporn, Head of Institutional Sales and Prime Brokerage at BitGo. "As new sources of liquidity emerge, our goal is to enable clients to maintain a consistent, trusted custody and operational framework while accessing execution that best fits their strategy."

Derive has processed more than $30 billion in cumulative notional volume. Nick Forster, Founder and CEO of Derive, said that accessing onchain markets had previously required institutions to compromise on their preferred custody model, and that the integration addresses that constraint.

According to a press release from BitGo, the integration is now available to eligible institutional clients.