BitGo, OTC Markets plan tokenized securities for brokers
BitGo and OTC Markets Group plan to give more than 150 broker-dealers access to trade and settle digital asset securities through OTC Link ATS using BitGo’s custody infrastructure. The BitGo OTC Markets plan would let firms quote, trade, and settle tokenized securities on familiar electronic systems. The companies announced the proposed alliance on Wednesday, according to Cointelegraph.
Digital asset infrastructure provider BitGo and OTC Markets Group, which operates regulated over-the-counter securities markets, aim to pair trading and custody tools so broker-dealers can reach tokenized securities without building crypto-native stacks from scratch. More coverage sits in our Fintech & Crypto Alerts hub.
Key Takeaways
- BitGo and OTC Markets plan digital asset trading and custody for broker-dealers on OTC Link ATS.
- More than 150 broker-dealers could quote, trade, and settle digital asset securities on existing electronic infrastructure.
- BitGo Bank & Trust would act as qualified custodian; settlement would run through BitGo’s Go Network.
- The framework starts with digital asset securities and may later cover tokenized assets and commodities as rules evolve.
- OTC Markets Group shares rose about 2.7% by midday Wednesday, to $53.50, on thin volume.
What is the BitGo OTC Markets plan?
Under the proposal, participating broker-dealers on OTC Link ATS—an alternative trading system regulated by the US Securities and Exchange Commission—would use the same electronic trading infrastructure they already use for over-the-counter and US equity markets.
BitGo Bank & Trust would serve as the qualified custodian. Settlement would be facilitated through BitGo’s Go Network. The initial focus is digital asset securities, with room to expand into tokenized assets and commodities as regulatory frameworks evolve.
Why does broker-dealer access matter?
Broker-dealers already sit inside established regulatory and market frameworks. Folding digital asset trading and custody into familiar rails could lower operational barriers to offering tokenized securities.
The timing fits a wider push by traditional finance into tokenized real-world assets, alongside clearer US rules for digital asset markets. In December, BitGo received final OCC approval to operate as a federally chartered national trust bank, supporting qualified custody under federal banking oversight.
How big could tokenized securities become?
Analysts at Bernstein have projected that the value of tokenized real-world assets could reach up to $4 trillion by 2030, spanning equities, commodities, and other financial assets. Bernstein also flagged tokenization and prediction markets as a next battleground for exchanges and brokers.
Similar efforts by firms including Securitize and Cantor Fitzgerald are already trying to bring tokenization into capital markets, including IPOs and follow-on equity offerings. The BitGo–OTC Markets proposal is another bid to meet that demand through regulated venues brokers already know.