BitGo launches Global Markets led by former NYDIG executive Pete Janney

BitGo brings trading and financing under one new unit

BitGo has launched BitGo Global Markets, a new business for institutional trading and financial services. The unit will be led by Pete Janney, a former NYDIG executive.

The launch follows BitGo's acquisition of NYDIG's institutional and trading business on Aug. 27. About 30 employees joined BitGo as part of that deal.

Janney first joined BitGo as head of financial infrastructure. His experience includes trading and capital markets, the company said.

Services offered through the new division

• Spot trading and large over-the-counter (OTC) transactions, meaning trades arranged directly between parties rather than on a public exchange.
• Borrowing against crypto holdings, with collateral kept in qualified custody.
• Options, swaps, and custom structured products for eligible counterparties.
• Managed investment strategies, private funds, and research.
• Clearing and settlement through BitGo's Go Network, which handles the completion of trades.

What BitGo says about combining its existing business

BitGo has offered institutional trading through BitGo Prime since 2020. That business will now sit inside Global Markets.

BitGo said the new unit combines liquidity, execution, financing, derivatives, and settlement services. The added NYDIG capabilities include derivatives, financing, collateral servicing, and structured products.

Chief Executive Mike Belshe said the combined business is intended to help institutions manage risk and carry out more complex strategies. Janney said clients need services beyond simply holding digital assets.

How liquidity and crypto-backed borrowing will work

The Global Liquidity Layer will draw liquidity from exchanges, market makers, and other counterparties. An exchange is a platform where assets are bought and sold.

Clients will be able to borrow against their crypto holdings to fund trading positions. BitGo said it will monitor margins, which are the funds set aside to cover potential losses, and handle collateral calls or liquidations if needed.

Options, swaps, and custom structured products are described by BitGo as tools to hedge exposure, express market views, and manage portfolio risk.

Share price move reported after the announcement

BitGo's shares, traded as BTGO, were up 3.4% in pre-market trading on Wednesday, according to TradingView. The shares had risen 3.7% on Tuesday, the same source reported.

The Block report behind this story

• The Block