Crypto Exchanges

Story: BitGo Acquires NYDIG’s Institutional Trading Arm to Transform Crypto Custody Services

By Sakamoto Nashi

1 / 15

What happened. BitGo just bought NYDIG's institutional trading division.

2 / 15

The historical context. It's not the first time a crypto firm bought its way into a new business line.

3 / 15

Why it matters. The competitive pressure this creates is real. BitGo adding derivatives and financing to its…

4 / 15

What to watch. A few things worth tracking over the coming months.

5 / 15

BitGo just bought NYDIG's institutional trading division. The deal is meant to beef up BitGo's derivatives and financing capabilities — a clear signal the company wants to be…

6 / 15

Custody was the foundation. But it's not enough anymore. BitGo is pushing into territory that's been dominated by trading desks and prime brokers, and the NYDIG deal gives it a…

7 / 15

It's not the first time a crypto firm bought its way into a new business line. Back in 2018, Coinbase picked up Earn.

8 / 15

The pattern here is pretty consistent. Crypto companies hit a ceiling in their core product, look around at what institutional clients want next, and then go buy it rather than…

9 / 15

What's different now is the market itself. In 2019, institutional crypto was still a fringe conversation. Today it's not.

10 / 15

The competitive pressure this creates is real. BitGo adding derivatives and financing to its custody business puts Coinbase, Gemini, and a handful of other institutional-focused…

11 / 15

Read also: BitGo Acquires NYDIGs Trading Arm as NYDIG Shifts Focus to 3-Gigawatt Mining Project

12 / 15

Institutional investors are the clear winners in the short run. More competition for their business means better pricing, better service, and probably faster product development…

13 / 15

Traditional finance firms that haven't moved into crypto derivatives and financing yet? They're probably watching this closely.

14 / 15

And there's a broader consolidation story here too. The crypto industry has a lot of specialized firms that built one thing really well — trading, custody, lending, derivatives —…

15 / 15

More context: Bitwise Moves $15.4 Million in XRP as Price Dips to $1.30

The Currency Analytics

Want the full story?