BitGo has agreed to buy NYDIG's institutional trading business and related assets, adding derivatives, structured products and financing to its custody and wallet infrastructure. The deal lands as Bitcoin rises more than 20% over the past week, one of the first signs of a rebound in crypto trading.
BitGo has agreed to buy the institutional trading business and related assets of NYDIG, expanding its footprint into derivatives and capital markets just as crypto trading activity picks back up. Terms of the deal weren't immediately available.
What BitGo is acquiring
With the acquisition, BitGo will add derivatives, structured products, financing and other capital markets services to its existing custody, settlement and wallet infrastructure businesses. An expected 30 employees from NYDIG and 250 institutional client relationships will join BitGo, according to a person close to the matter.
NYDIG's institutional trading business serves asset managers, hedge funds, corporations, family offices and other institutional investors, with a focus on derivatives, financing and customized trading strategies.
A rebound in crypto trading
BitGo has a small public market profile — it went public at the start of the year, is based in Sioux Falls, South Dakota, and has a market value today of less than $1 billion. Founded in 2013, the company is one of the earliest players in institutional crypto custody and infrastructure, with a strong reputation for security and serving major institutions.
The custody provider is expanding its institutional and capital markets capabilities as crypto markets emerge from a prolonged trading slowdown. Bitcoin has risen more than 20% over the past week, briefly topping $80,000 on Tuesday, after several months of weak trading volume and lackluster investor participation.
Shifting toward infrastructure
The BitGo expansion offers a glimpse into how crypto companies are preparing for a continued recovery after the latest bout of crypto winter, and highlights how the industry is shifting away from crypto as a separate asset class and instead toward crypto-based infrastructure serving institutions.
Source: CNBC
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