BitGo folds NYDIG's trading business into a new Global Markets arm offering crypto-backed loans, options and swaps

BitGo, the crypto custody company listed on the New York Stock Exchange, launched a trading and financing division on Wednesday called BitGo Global Markets, built around the institutional and trading business it bought from NYDIG. The company announced the unit in a press release; The Block reports the acquisition took place on August 27 and brought about 30 employees.

Pete Janney, who joined from NYDIG, was named head of Global Markets. The unit folds in BitGo Prime, the trading service BitGo has offered since 2020, and adds derivatives, collateral management and structured finance.

According to the release and The Block, clients get spot and large over-the-counter trades; loans against crypto collateral, with BitGo holding the collateral in qualified custody, monitoring margin and handling collateral calls and liquidations; options, swaps and custom structures for eligible counterparties; managed strategies and private funds; and research. Clearing and settlement run on BitGo's Go Network.

Chief executive Mike Belshe said BitGo has built a "strong foundation across custody, liquidity, trading, financing, and settlement."

BitGo describes the shift as expanding from an infrastructure provider to a broader suite of financial services across the full life of a trade. Its shares rose 3.4% in pre-market trading on Wednesday after a 3.7% gain on Tuesday, The Block reports, citing TradingView.