BitGo Shifts Strategic Focus From Custody To Prime Brokerage

U.S. digital asset custodian BitGo is expanding beyond traditional crypto custody as Chief Executive Officer Mike Belshe targets trading, lending, and settlement as the company's main revenue engines, according to CryptoNews. Belshe stated that his long-term ambition is for prime brokerage to account for the entire business, noting that clients increasingly expect integrated institutional service platforms rather than standalone storage solutions.

Expanding Prime Brokerage Capabilities

To build out its trading and lending infrastructure, BitGo acquired NYDIG's institutional trading business in August, incorporating derivatives, execution, financing, and structuring capabilities. The firm's Go Network cleared over $2 billion through Crossover Markets by September. Additionally, BitGo expanded its international off-exchange settlement arrangements, integrating OKX liquidity for eligible international institutions while keeping supported collateral in segregated custody with BitGo Singapore.

BitGo Prime manages trading and financing, while the Go Network handles capital movement and settlement. Delivery-versus-Payment services allow assets and payments to settle together while assets remain in regulated custody. In financial filings, the company reported total second-quarter revenue of $4.33 billion, up 79.6% year over year, though digital asset sales accounted for $4.20 billion of gross volume with a direct cost of roughly $4.19 billion and a margin of about $7.1 million.

Key facts

• BitGo CEO Mike Belshe aims for prime brokerage to generate all company revenue.
• The firm acquired NYDIG's institutional trading business in August.
• Go Network cleared over $2 billion through Crossover Markets by September.
• BitGo reported $4.33 billion in total second-quarter revenue, up 79.6% year over year.
• The platform recorded 5,833 clients holding $65.2 billion in assets at the end of June.