BitGo Holdings, Inc. ("BitGo"), a digital asset infrastructure company, has announced an integration with Derive Labs, Inc. ("Derive"), an onchain derivatives exchange built for professional traders and institutions. The partnership expands institutional access to onchain options and perpetual futures while allowing eligible clients to keep their collateral within BitGo's regulated infrastructure.

Under the integration, eligible institutional clients can access Derive's onchain derivatives markets while their collateral remains held at BitGo Bank & Trust, National Association ("BitGo Bank & Trust"), an OCC-regulated digital asset trust bank. Clients gain access to Derive's electronic execution, portfolio margining, and onchain options liquidity while utilizing BitGo Bank & Trust's regulated custody and collateral framework. By decoupling asset custody from trade execution, the model mirrors the prime brokerage architecture used in traditional financial markets, where custodians and executing brokers operate as separate functions. In digital assets, this separation has gained renewed institutional focus following the 2022 collapse of FTX, which exposed the risks of commingling customer assets with exchange operating funds. BitGo and Derive's integration is designed to mitigate exchange counterparty exposure, reduce asset commingling risk, and streamline operations, all while supporting more capital-efficient participation in onchain markets.

"Institutional markets are built on the separation of custody and trading," said Adam Sporn, Head of Institutional Sales and Prime Brokerage at BitGo. "We believe bringing that same model to digital assets is critical for the continued long-term institutional adoption. As new sources of liquidity emerge, our goal is to enable clients to maintain a consistent, trusted custody and operational framework while accessing execution that best fits their strategy."

Derive, formerly known as Lyra Finance, has processed more than $30 billion in cumulative notional volume, providing institutions with established electronic derivatives liquidity now accessible through BitGo's institutional infrastructure. Onchain derivatives have grown as a category over the past several years, with protocols such as dYdX, GMX, and others collectively processing tens of billions in monthly volume, reflecting demand for decentralized alternatives to centralized exchange derivatives.

"Institutions use options to hedge risk, generate yield and construct exposures that cannot be replicated efficiently through spot or perpetual futures alone," said Nick Forster, Founder and CEO of Derive. "Until now, accessing these markets onchain has often required institutions to compromise on their preferred custody model. By integrating with BitGo, clients can access Derive's liquidity and capital-efficient margin system while keeping their underlying assets within the custody framework their risk and compliance teams already trust."

As institutions increasingly trade across a growing number of venues and execution models, BitGo says it remains committed to providing clients with the flexibility to choose where they execute while maintaining the operational controls and risk management standards they require. BitGo's institutional collateral framework continues to serve as the backbone for an expanding range of workflows, enabling clients to deploy capital more efficiently across digital asset operations.