Digital asset infrastructure provider BitGo and OTC Markets Group have announced a proposed partnership to deliver digital asset trading and custody infrastructure tailored for broker-dealers, a move designed to expand institutional access to tokenized securities through established market systems.

Speaking on Wednesday, the companies said the alliance would serve over 150 broker-dealers currently using OTC Link ATS, an alternative trading system regulated by the US Securities and Exchange Commission. If the plan is implemented, these broker-dealers would gain the ability to quote, trade, and settle digital asset securities through the same electronic infrastructure they already rely on for over-the-counter and US equity markets.

Under the proposed framework, BitGo Bank & Trust would serve as the qualified custodian, while settlement would be processed via BitGo's Go Network. The custody component is central for broker-dealers because digital asset securities still require controls around safekeeping, settlement, and regulatory compliance that align with securities-market obligations. The initiative is initially focused on digital asset securities, with the potential to broaden its scope to tokenized assets and commodities as regulatory frameworks mature.

The announcement arrives at a time when traditional financial institutions are showing growing interest in tokenized representations of real-world assets, and as US regulators take steps toward providing greater clarity for digital asset markets. Tokenization generally refers to representing ownership or economic rights in an asset on a blockchain or similar digital ledger, while the underlying product may still be subject to existing securities, commodities, banking, or market-structure rules.

BitGo's regulatory credentials were strengthened in December, when the company received final approval from the US Office of the Comptroller of the Currency to operate as a federally chartered national trust bank. This designation enables the firm to offer qualified custody services under federal banking supervision.

OTC Markets Group's shares rose approximately 2.7% by midday Wednesday to $53.50 on light trading volume.

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The Strategic Role of Broker-Dealers in Tokenization

Broker-dealers are positioned to be pivotal participants in the shift toward tokenized securities because they already function within well-established regulatory and market structures. By embedding digital asset trading and custody capabilities into existing infrastructure, the BitGo–OTC Markets partnership could lower the operational hurdles that broker-dealers face when entering the tokenized securities space, eliminating the need for them to adopt entirely new crypto-native platforms.

The proposed alliance coincides with the continued expansion of the tokenized securities market. Analysts at Bernstein have projected that the value of tokenized real-world assets could reach as much as $4 trillion by 2030, fueled by wider adoption across equities, commodities, and other financial instruments.

The move also follows comparable initiatives by firms including Securitize and Cantor Fitzgerald, which are working to introduce tokenization into capital markets through initial public offerings and follow-on equity offerings.

Bernstein analysts have identified tokenization and prediction markets as the next competitive "battleground" for exchanges and brokers. For market participants, the practical test will be whether tokenized products can be integrated into familiar compliance, custody, disclosure, and settlement workflows without fragmenting liquidity across separate trading venues.

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