Cryptocurrency infrastructure company bitgo has agreed to acquire NYDIG’s institutional trading business and related assets, CNBC reported.
The acquisition will see BitGo add derivatives, structured products, finance and other capital markets services to its existing custody, payments and wallet infrastructure businesses. Thirty NYDIG employees and 250 institutional customer relationships are expected to join BitGo, according to people familiar with the matter. Terms of the deal were not immediately available.
BitGo has a small profile on the public markets, going public earlier this year, headquartered in Sioux Falls, South Dakota, and currently having a market value of less than $1 billion. However, the company boasts a long-standing reputation in the cryptocurrency industry. Founded in 2013, BitGo is one of the earliest players in institutional cryptocurrency custody and infrastructure, with a strong reputation for security and serving major institutions.
Just as the crypto market emerges from a prolonged trading downturn, custody providers are expanding their capacity for institutional investors and capital markets. This transaction is one of the first signs of a broader recovery in crypto trading. After months of low trading volume and weak investor participation, Bitcoin has risen more than 20% in the past week, briefly topping $80,000 on Tuesday.
BitGo’s expansion also provides a glimpse into how crypto companies are preparing for a continued recovery after the recent “crypto winter,” highlighting how the industry is moving away from crypto as an asset class and instead focusing on crypto-based infrastructure serving institutions.
NYDIG’s Institutional Trading business serves asset managers, hedge funds, corporations, family offices and other institutional investors with a focus on derivatives, finance and customized trading strategies.
