BitGo buys NYDIG trading unit to add derivatives, financing
BitGo has acquired NYDIG’s institutional trading unit, including its derivatives desk and financing arm, to expand trading, lending and custody services for institutions.
BitGo has acquired NYDIG’s institutional trading unit, including its derivatives trading desk and financing operations, the firms confirmed. The transaction closed recently.
The deal moves NYDIG’s trading team and infrastructure for institutional clients to BitGo. BitGo will offer the trading and lending services alongside its existing custody and settlement products.
BitGo will integrate the acquired operations and personnel into its institutional services to support futures and options execution, over-the-counter derivatives trading, and margin and secured financing for clients.
NYDIG will keep focusing on bitcoin-focused asset management, financial products and advisory services while the divested trading unit becomes part of BitGo’s market-facing offerings for asset managers, hedge funds and other large counterparties.
Client relationships and ongoing trades managed by the unit will transfer to BitGo. The agreement covers trading technology, risk systems and client onboarding processes tied to derivatives execution and financing. Regulatory and compliance work related to client transfers is underway.
Financial terms and the number of staff moving to BitGo were not disclosed.
BitGo plans to use its custody and security systems to support the trading and financing functions so clients can access execution, lending and collateral management through a single institutional platform.
Industry analysts have noted that combining custody with trading and lending can reduce operational friction for large crypto participants and simplify counterparty arrangements. The transaction aligns with a trend of institutional providers adding trading desks and credit capabilities to custody services.
BitGo was founded in 2013 and offers institutional wallet custody, security technology and transaction settlement. NYDIG provides bitcoin investment products and services for institutions, advisers and corporations; the sale of the trading unit lets it concentrate on asset management and advisory offerings.
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