BitGo, OTC Markets plan tokenized securities access for broker-dealers

BitGo, a digital asset infrastructure provider, and OTC Markets Group, which operates regulated over-the-counter securities markets, announced plans to partner on digital asset trading and custody infrastructure targeting broker-dealers. This collaboration aims to serve over 150 broker-dealers who currently use OTC Link ATS, a US Securities and Exchange Commission-regulated alternative trading system. If implemented, the partnership would allow these broker-dealers to quote, trade, and settle digital asset securities using the same electronic trading infrastructure they presently use for over-the-counter and US equity markets.

Under the proposed framework, BitGo Bank & Trust would serve as the qualified custodian, while settlements would occur via BitGo’s Go Network. Initially, the infrastructure is designed to support digital asset securities, with the possibility of expanding to tokenized assets and commodities as regulatory frameworks develop. This development comes amid growing interest from traditional financial institutions in tokenized real-world assets, and following US regulators’ efforts to clarify rules governing digital asset markets. BitGo recently 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 oversight.

The announcement is viewed as significant because broker-dealers operate within established regulatory and market structures, making them key players in advancing tokenized securities. By enabling these broker-dealers to use familiar infrastructure for digital asset trading and custody, the alliance could lower operational barriers and reduce the need to adopt new, crypto-native systems. The move reflects a broader market trend, as analysts from Bernstein projected that the value of tokenized real-world assets could reach up to $4 trillion by 2030, fueled by adoption across equities, commodities, and other financial sectors.

OTC Markets Group’s stock price increased by approximately 2.7% to $53.50 per share on thin volume following the announcement. The collaboration aligns with other industry efforts to incorporate tokenization into capital markets, such as initiatives by companies like Securitize and Cantor Fitzgerald. Analysts view tokenization and prediction markets as emerging competitive areas for exchanges and brokers, indicating that this partnership may help position both BitGo and OTC Markets Group in a growing segment of the financial ecosystem.