Crypto custody leader BitGo is reportedly considering an initial public offering as early as the second half of 2025. This move comes after the company experienced significant growth in its assets under custody, reflecting a broader surge in institutional crypto adoption.
According to a recent Bloomberg interview with BitGo’s Asia-Pacific managing director, Abel Seow, the firm’s assets under custody soared from $60 billion to $100 billion in just six months—a 67% increase. This uptick is attributed to growing global crypto adoption and more defined regulatory frameworks. Notably, half of these assets are currently being staked, indicating rising institutional interest in yield-generating blockchain activities.
Company Background and Funding
Established in 2013, BitGo has grown from a basic custody service provider into a full-featured institutional platform. Today, it offers a wide range of financial services including crypto trading, lending, and borrowing.
In 2023, the company completed a $100 million Series C funding round, achieving a valuation of $1.75 billion. This round saw participation from prominent investors such as Valor Equity Partners, DRW Holdings, Redpoint Ventures, and Goldman Sachs.
Market Context and Regulatory Shifts
A potential BitGo IPO would place it among a growing list of cryptocurrency firms seeking to go public. This trend is partly driven by a shifting regulatory environment in the United States, where recent political changes have led to more favorable policies toward digital assets.
New regulatory appointments and a focus on stablecoin legislation have created a more supportive atmosphere for crypto businesses. These developments are encouraging more companies to explore public market opportunities.
Global Expansion and Strategic Partnerships
BitGo’s growth isn’t limited to asset accumulation. The company has been actively expanding its global presence through strategic partnerships and joint ventures.
In 2024, Hana Financial Group and SK Telecom acquired equity in BitGo Korea, a subsidiary that has been described as "progressing well" by company representatives. This move strengthens BitGo’s foothold in the Asian market.
The firm has also secured several high-profile integrations, such as a partnership with KuCoin Singapore’s Go Network to enable off-exchange settlements for institutional clients. Additionally, BitGo assisted VivoPower in acquiring $250 million worth of XRP in three separate transactions.
Product Development and Network Growth
BitGo continues to innovate and expand its service offerings. In early June, the company announced plans to develop institutional-grade custody and settlement infrastructure on the Hedera network, with a focus on decentralized finance applications.
More recently, BitGo partnered with crypto exchange HTX to launch insured, secure off-exchange trading for large-scale clients via its Go Network. The company has also increased staking support for Flare and Songbird within the XRP ecosystem.
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Frequently Asked Questions
What is driving BitGo’s growth in assets under custody?
The increase is largely due to rising institutional demand for crypto services, clearer regulations, and the growing popularity of staking and yield-generation products. Global adoption of digital assets has also played a significant role.
How does staking work within BitGo’s platform?
Staking allows users to earn rewards by participating in blockchain network validation. BitGo supports staking for various cryptocurrencies, enabling institutional clients to generate yield on their idle digital assets.
What are the benefits of off-exchange settlement?
Off-exchange settlement enhances security by allowing traders to execute trades without transferring assets to an exchange. This reduces counterparty risk and potential exposure to exchange-related vulnerabilities.
How might a BitGo IPO impact the crypto custody industry?
A successful public offering could validate the crypto custody business model, encourage further institutional investment, and potentially lead to increased competition and innovation in the sector.
What regions is BitGo targeting for expansion?
BitGo is actively growing its presence in Asia through partnerships and joint ventures, in addition to strengthening its services in North American and European markets.
Why is regulatory clarity important for crypto custody providers?
Clear regulations help establish operational guidelines, improve investor confidence, and enable traditional financial institutions to engage with digital asset services more comfortably.