BitGo, a firm specializing in crypto custody services, announced the launch of its global over-the-counter (OTC) trading desk for digital assets, a strategic move as it prepares for a potential initial public offering (IPO) later this year.

The newly established OTC desk provides a variety of services, including spot and derivatives trading across more than 250 digital assets, lending services, and yield-generating products.

This expansion comes on the heels of a reported 106% surge in institutional crypto OTC trading volumes in 2024, driven largely by the election of US President Donald Trump and heightened demand for US spot crypto exchange-traded funds (ETFs).

The OTC desk boasts a network of dozens of liquidity sources, including multiple exchanges, positioning BitGo to cater to a broad spectrum of trading needs. According to BitGo's Feb. 18 statement, the platform also offers a significant $250 million insurance coverage and facilitates the trading of locked layer-1 tokens for venture capitalists and hedge funds.

Matt Ballensweig, BitGo's managing director, emphasized the comprehensive nature of the service, stating, "The desk gives clients the ability to execute with a full-service desk across spot, derivatives, and lending, all while their assets stay protected in qualified custody until the time of settlement."

The announcement follows BitGo's December revelation of a global version of its digital asset solutions for retail investors, expanding its offerings to include trading, staking, and wallet services, similar to those provided by crypto exchange platforms.

BitGo's potential IPO, slated for the second half of 2025, is still under discussion. If it proceeds, BitGo would join a cohort of major crypto firms considering public listings, including stablecoin issuer Circle, crypto exchanges Kraken and Figure, crypto bank Anchorage Digital, and blockchain analytics firm Chainalysis.

These companies are predicted by Bitwise to be among at least five crypto unicorns going public in 2025, following the footsteps of Coinbase (NASDAQ: COIN ), which became the first major crypto firm to list its shares on the Nasdaq in 2021.

Currently, BitGo is a regulated entity offering crypto custody, lending, and infrastructure services to US institutions and reportedly has $100 billion in assets under custody. The launch of regulated OTC desks like BitGo's could potentially further crypto adoption in the institutional space.