BitGo and OTC Markets plan digital asset alliance for broker-dealers

BitGo Holdings (NYSE: BTGO) and OTC Markets Group (OTCQX: OTCM) announced their intention to pursue a strategic alliance aimed at bringing digital asset trading and custody infrastructure to broker-dealers that use OTC Link ATS, an SEC-regulated alternative trading system.

Under the proposed framework, subscribed broker-dealers would be able to quote, price, and execute trades in digital asset securities on the same electronic trading infrastructure they currently use for NMS and OTC equities markets. The connection would be powered by MatchHub, Elysium's post-trade platform, which links OTC Link ATS to digital asset custodians and helps subscribers coordinate transactions through settlement.

BitGo Bank and Trust, National Association, an OCC-chartered digital asset trust bank and subsidiary of BitGo, would serve as qualified custodian and facilitate settlement between counterparties through Go Network, an offchain settlement infrastructure.

The alliance is intended to support digital asset securities while laying groundwork for broker-dealers to expand offerings across tokenized assets, commodities, and blockchain-based financial markets as regulatory frameworks develop.

"Financial markets function best when trading, custody and settlement responsibilities are clearly separated, and fiduciary protections remain intact," said Mike Belshe, CEO and co-founder of BitGo.

Cromwell Coulson, president and CEO of OTC Markets Group, said the alliance is intended to ensure subscribers have access to digital asset markets while maintaining existing compliance processes and regulatory standards.

The proposed arrangement is based on a press release issued by the two companies. The alliance remains subject to applicable regulatory requirements and has not yet been finalized.

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