BitGo and OTC Markets Group are launching a joint initiative to expand tokenized securities access for broker-dealers across the United States. The partnership connects over 150 registered broker-dealers to a digital asset settlement layer powered by BitGo's institutional custody infrastructure.
OTC Link ATS, the alternative trading system operated by OTC Markets Group, will serve as the trading venue. BitGo provides the backend custody and settlement technology. This setup lets broker-dealers execute and settle tokenized securities trades without building their own infrastructure from scratch.
The move targets a specific market gap. Broker-dealers want exposure to tokenized securities but lack the operational machinery to custody digital assets safely or settle transactions on-chain. By centralizing these functions through BitGo, the partnership lowers the barrier to entry and standardizes risk management across participants.
BitGo handles roughly 20 percent of all digital assets held in custody globally, managing over $60 billion in assets. The firm's institutional-grade infrastructure includes multi-signature wallets, insurance coverage, and compliance frameworks designed for regulated entities. OTC Markets Group runs the infrastructure where roughly two trillion dollars in OTC securities trade annually.
Tokenized securities remain nascent but attract serious institutional interest. Assets like fractional real estate, bonds, and equity shares issued on blockchains offer faster settlement, lower intermediary costs, and 24/7 market access. However, custody complexity and regulatory uncertainty have slowed adoption among traditional finance firms.
This partnership addresses both. By routing trades through a registered alternative trading system with custody handled by a bankrupt-remote custodian, the structure provides compliance clarity. Broker-dealers get regulated on-ramps without managing blockchain infrastructure directly.
The timing aligns with growing SEC acceptance of tokenized securities frameworks. Multiple registered investment advisors now offer tokenized asset products, and major custodians including Fidelity and B