TLDR
- BitGo and OTC Markets target 150 broker-dealers for tokenized assets.
- OTC Link ATS may enable tokenized securities trading and settlement.
- BitGo custody network could support regulated tokenized securities.
- Broker-dealers may access tokenized assets through existing systems.
- The alliance advances institutional adoption of tokenized securities.
BitGo Bank & Trust and OTC Markets Group announced a proposed alliance to expand Tokenized Securities trading across regulated markets. The plan would connect more than 150 broker-dealers with qualified custody and settlement infrastructure for Tokenized Securities. The framework aims to support broader blockchain-based financial markets as regulatory standards continue developing.
Alliance targets regulated trading and custody infrastructure
BitGo Bank & Trust plans to provide qualified custody services under the proposed partnership. OTC Markets Group intends to integrate digital asset trading through its OTC Link ATS platform. Broker-dealers could access Tokenized Securities using familiar regulated trading infrastructure.
The proposal would allow participating firms to quote, price, and execute digital asset securities through existing electronic systems. MatchHub, Elysium’s post-trade platform, would connect OTC Link ATS with digital asset custodians. The platform would also coordinate settlement activities between participating counterparties.
BitGo would handle settlement through its Go Network offchain infrastructure under the proposed arrangement. Moreover, the bank would safeguard client assets as the qualified custodian throughout each transaction. The structure also maintains client asset segregation through a bankruptcy-remote framework that separates customer holdings from corporate assets.
Partnership supports wider adoption of Tokenized Securities
The proposed alliance focuses on digital asset securities before expanding into additional blockchain-based financial products. Later, broker-dealers could extend services to tokenized commodities and other assets as regulations mature. Therefore, the initiative creates a pathway for broader Tokenized Securities adoption within established financial markets.
The partnership also preserves existing market structure by separating trading, custody, and settlement responsibilities. OTC Link ATS would continue supporting market-making and best execution processes for participating broker-dealers. BitGo would complement that structure with regulated custody designed for institutional participants handling Tokenized Securities.
The announcement reflects growing demand for regulated infrastructure supporting blockchain-based financial products. Financial institutions continue integrating blockchain technology without replacing established compliance processes. As a result, Tokenized Securities continue moving closer to mainstream capital market operations.
Expanding tokenization follows regulatory progress
The proposal arrives as United States regulators continue developing clearer digital asset rules. BitGo strengthened its position after receiving final approval to operate as a federally chartered national trust bank. The company can provide federally supervised qualified custody services for Tokenized Securities and related digital assets.
The planned alliance also follows increasing activity across tokenized financial markets. Several financial firms continue building platforms supporting blockchain-based equities, commodities, and investment products. Meanwhile, analysts project tokenized real-world assets could reach trillions of dollars before the end of the decade, supporting further Tokenized Securities growth.
OTC Markets Group’s shares rose about 2.7% to approximately $53.50 following the announcement. The proposed partnership would extend regulated infrastructure to more than 150 broker-dealers through OTC Link ATS. Overall, the initiative strengthens institutional access to Tokenized Securities while preserving established market practices and regulatory standards.
