BitGo and OTC Markets Group Partner to Bring Tokenized Securities to Traditional Broker-Dealers

Digital asset infrastructure firm BitGo and OTC Markets Group have announced a strategic partnership aimed at integrating digital asset trading and custody services into the existing workflows of traditional broker-dealers. The collaboration seeks to provide a bridge for institutional players to access the burgeoning market for tokenized securities through established financial infrastructure.

Under the proposed framework, more than 150 broker-dealers currently utilizing the OTC Link ATS—an alternative trading system regulated by the U.S. Securities and Exchange Commission (SEC)—will be able to quote, trade, and settle digital asset securities. This integration allows these firms to utilize the same electronic trading systems they currently employ for over-the-counter (OTC) and U.S. equity markets, potentially lowering the barrier to entry for digital asset adoption.

BitGo Bank & Trust is slated to serve as the qualified custodian for the venture, providing the necessary regulatory compliance for institutional asset protection. Settlement processes will be managed through BitGo’s Go Network, a platform designed to facilitate real-time settlement and mitigate counterparty risk. While the initial focus remains on digital asset securities, the companies indicated that the infrastructure could eventually support other tokenized real-world assets (RWAs) and commodities as the legal landscape matures.

The move comes at a time when the financial industry is increasingly focused on the tokenization of traditional assets. By representing ownership of physical or financial assets on a blockchain, firms aim to increase liquidity, reduce settlement times, and lower administrative costs. This trend is gaining momentum among major financial institutions; for instance, firms like Cantor Fitzgerald and Securitize have recently made significant strides in bringing capital market activities, including initial public offerings, into the digital asset ecosystem.

The regulatory standing of the participants is a central component of the partnership. In late 2023, BitGo received final approval from the Office of the Comptroller of the Currency (OCC) to operate as a federally chartered national trust bank. This designation allows the firm to offer qualified custody services under federal oversight, a critical requirement for many institutional investors and broker-dealers who must adhere to strict fiduciary standards.

Market analysts have expressed high expectations for the tokenization sector. A recent report from Bernstein projected that the market for tokenized real-world assets could surge to $4 trillion by 2030. This growth is expected to be driven by the migration of equities, private equity, and commodities onto distributed ledger technology, turning tokenization into a primary competitive arena for global exchanges and brokerage firms.

Following the announcement, shares of OTC Markets Group saw a positive reaction from investors. The stock rose approximately 2.7% during Wednesday trading, reaching a price of $53.50 per share. While the trading volume remained relatively light, the price movement reflects investor interest in the company’s expansion into digital asset infrastructure.

The partnership highlights the critical role of broker-dealers in the evolving digital economy. Because these entities already operate within a robust regulatory framework, they are viewed as essential intermediaries for the mass adoption of tokenized assets. By providing them with tools that fit into their existing operational models, BitGo and OTC Markets Group aim to accelerate the transition from traditional paper-based or centralized ledger systems to blockchain-based settlement.