BitGo completes acquisition of NYDIG institutional trading unit

BitGo has acquired the institutional trading business of NYDIG, a move designed to consolidate digital asset services under a single infrastructure provider. The transaction enables NYDIG to redirect its strategic focus towards power generation, bitcoin mining and data center development. By integrating the trading operations, BitGo aims to address what it describes as growing institutional demand for a unified platform that manages the full lifecycle of digital assets, from custody and trading to financing and settlement.

The acquisition is intended to increase the retention of assets on the BitGo platform by offering a comprehensive suite of capital market services. Mike Belshe, chief executive officer of BitGo, stated that institutions increasingly prefer partners capable of supporting the entire digital asset journey. He noted that the deal will significantly expand the firm’s trading and infrastructure capabilities while bringing in a team with substantial experience in serving institutional clients. Belshe added that the integration is expected to allow BitGo to serve a wider base of sophisticated clients who can benefit from the company’s broader infrastructure offerings.

A key aspect of the transaction is the transfer of NYDIG’s institutional trading business to a platform that operates a bank. BitGo recently secured full approval for a national trust bank charter from the Office of the Comptroller of the Currency. The company highlighted that it received this full approval one day after gaining conditional clearance, a timeline that differed from peers such as Circle, Ripple, Paxos and Fidelity Digital Assets, which received their approvals in December.

Pete Janney, head of financial infrastructure at BitGo, emphasised that the move allows the team to continue providing innovative solutions and high-quality execution backed by deeper resources. NYDIG, which serves asset managers, hedge funds, corporates and family offices, highlighted the liquidity and customised trading strategies provided by its business. Tejas Shah, chief executive officer of NYDIG, described the trading franchise as exceptional, noting that the discipline used to build it also drives the company’s high-performance computing data center development business, which he identified as a significant future opportunity.