BitGo and OTC Markets Plan Digital Asset Trading Infrastructure for Broker-Dealers

Digital asset infrastructure provider BitGo and OTC Markets Group plan to partner on digital asset trading and custody infrastructure for broker-dealers, a move aimed at expanding institutional access to tokenized securities through existing market infrastructure. According to Cointelegraph, the companies said Wednesday that the proposed alliance would serve more than 150 broker-dealers using OTC Link ATS, an alternative trading system regulated by the US Securities and Exchange Commission. If implemented, participating broker-dealers would be able to quote, trade and settle digital asset securities through the same electronic trading infrastructure they already use for over-the-counter and US equity markets. Under the proposal, BitGo Bank & Trust would serve as the qualified custodian, while settlement would be facilitated through BitGo’s Go Network. The framework is initially intended to support digital asset securities, with the potential to expand to tokenized assets and commodities as regulatory frameworks evolve.

The announcement comes as traditional financial institutions continue to explore tokenized versions of real-world assets, while US regulators have moved toward clearer rules for digital asset markets. In December, BitGo received final approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank, allowing it to provide qualified custody services under federal banking oversight. Investors lifted OTC Markets Group’s stock price roughly 2.7% by midday on Wednesday, to $53.50 a share on thin volume. Broker-dealers could play a key role in tokenization because they already operate within established regulatory and market frameworks, and the proposed alliance could reduce operational barriers for firms that want to offer tokenized securities without adopting entirely new crypto-native systems. The announcement also follows similar efforts by companies including Securitize and Cantor Fitzgerald to bring tokenization to capital markets, including initial public offerings and follow-on equity offerings. Bernstein analysts have projected that the value of tokenized real-world assets could reach up to $4 trillion by 2030, driven by broader adoption across equities, commodities and other financial assets.