BitGo and OTC Markets Group have proposed an alliance that would let more than 150 broker-dealers trade and settle digital asset securities through OTC Link ATS, using BitGo’s custody infrastructure. The move aims to bridge the gap between traditional securities markets and the growing digital asset space.
What the alliance involves
Under the proposal, broker-dealers connected to OTC Link ATS — an alternative trading system — would be able to access digital asset securities. BitGo would provide the custody and settlement backbone, handling the secure storage and transfer of the assets. The companies say the partnership would create a single platform for trading both traditional and digital securities, without requiring broker-dealers to set up separate infrastructure.
OTC Link ATS currently serves over 150 broker-dealers, giving them access to a wide range of over-the-counter securities. Adding digital asset securities to that network would allow those firms to offer their clients exposure to tokenized stocks, bonds, and other digital instruments through the same channels they already use.
Why the proposal matters
The alliance comes as interest in digital asset securities grows among institutional investors, but many broker-dealers have been slow to enter the space due to regulatory uncertainty and operational complexity. By using an existing ATS and a regulated custodian like BitGo, the proposal aims to lower those barriers.
BitGo is a qualified custodian for digital assets, meaning it meets regulatory standards for safekeeping client funds. OTC Markets Group operates the OTC Link platform, which is registered with the SEC as a broker-dealer and ATS. The combination could give broker-dealers a compliant way to handle digital securities without building new systems from scratch.
The proposal also highlights the growing push to bring digital assets into the mainstream financial system. Rather than creating separate exchanges for tokenized securities, the idea is to integrate them into existing market infrastructure.
What’s next
The alliance is still a proposal — the companies have not announced a launch date. They will need to work through regulatory requirements and finalize the technical integration between OTC Link ATS and BitGo’s custody platform. For now, the focus is on getting the structure right so that broker-dealers can start trading digital asset securities as soon as the platform goes live.
