BitGo, OTC Markets plan broker-dealer access on OTC Link ATS
BitGo and OTC Markets announced a plan for more than 150 broker-dealers on OTC Link ATS to quote, trade and settle tokenized securities, with custody by BitGo Bank & Trust.
BitGo and OTC Markets Group announced Wednesday a proposed alliance to let more than 150 broker-dealers on OTC Link ATS quote, trade and settle tokenized securities. BitGo Bank & Trust would serve as the qualified custodian and settlement would occur on BitGo’s Go Network.
OTC Link ATS is an SEC-regulated alternative trading system that connects the participating broker-dealers. Under the proposal, trading, quoting and settlement processes would integrate with the electronic infrastructure broker-dealers already use for over-the-counter and U.S. equity markets, rather than requiring firms to build separate crypto-native systems.
Settlement of tokenized securities would be handled on BitGo’s Go Network while custody would be provided by BitGo Bank & Trust. BitGo received final approval from the U.S. Office of the Comptroller of the Currency in December to operate as a national trust bank, a designation that permits it to offer qualified custody services under federal banking oversight.
The framework is aimed first at digital asset securities, with the potential to expand to tokenized real-world assets and commodities as regulatory frameworks evolve. The plan is subject to additional regulatory and operational approvals and technical integration before it could be implemented.
OTC Markets Group’s shares rose about 2.7% to $53.50 by midday Wednesday on thin volume.
Analysts at Bernstein have projected that tokenized real-world assets could reach as much as $4 trillion by 2030, a forecast that has prompted multiple firms to develop tokenization platforms and services. Other market participants have pursued tokenized offerings and infrastructure aimed at equity and debt markets.
If approved and built, the proposal would allow broker-dealers to keep trading activity on an SEC-regulated ATS while using a federally chartered custodian and a crypto-native settlement network for custody and settlement of tokenized instruments, subject to regulatory review and technical work.
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