BitGo and OTC Markets Team Up So Brokers Can Finally Trade Tokenized Stocks Without Leaving Their Old Habits Behind

Digital asset infrastructure provider BitGo and OTC Markets Group unveiled a proposed partnership on Wednesday aimed at bringing tokenized securities trading and custody to more than 150 broker-dealers operating on OTC Markets' regulated trading systems. Under the plan, participating broker-dealers would be able to quote, trade and settle digital asset securities using the same electronic infrastructure they already use for over-the-counter and US equity markets, removing the need to adopt separate crypto-native platforms.

BitGo Bank & Trust would serve as the qualified custodian under the framework, with settlement facilitated through BitGo's Go Network. The companies said the initial focus is on digital asset securities, with potential expansion to tokenized commodities and other tokenized assets as US regulatory frameworks evolve. OTC Link ATS, the alternative trading system operated by OTC Markets, is regulated by the US Securities and Exchange Commission.

The proposal arrives as traditional financial firms increasingly test tokenized versions of real-world assets. Analysts at Bernstein have projected that tokenized real-world assets could reach as much as $4 trillion in value by 2030, spanning equities, commodities and other financial instruments. Bernstein analysts have also pointed to tokenization and prediction markets as the next assets "battleground" for exchanges and brokers. The announcement follows comparable efforts by Securitize and Cantor Fitzgerald to bring tokenization to capital markets, including initial public offerings and follow-on equity offerings.

BitGo's regulatory standing was bolstered in December, when the US Office of the Comptroller of the Currency granted final approval for the firm to operate as a federally chartered national trust bank, clearing the way for qualified custody services under federal banking oversight. Separately, BitGo recently agreed to provide infrastructure for a bank-issued stablecoin pursued by SoFi.

OTC Markets Group's shares rose roughly 2.7% to $53.50 by midday Wednesday on thin volume following the announcement. Neither company disclosed a target launch date or specific tokenized securities slated for the initial rollout, and the framework remains subject to regulatory and operational steps before implementation.