BitGo files for US IPO with $90B in assets under custody
News Summary
Crypto custody firm BitGo has filed for a U.S. Initial Public Offering (IPO), aiming to capitalize on renewed institutional demand for digital asset infrastructure under the Trump administration. The firm plans to list its shares on the New York Stock Exchange under the ticker “BTGO.” As of June 30, 2025, BitGo reported approximately $90.3 billion in assets under custody, serving over 4,600 entities and more than 1.1 million users across 100 countries. BitGo supports over 1,400 digital assets and has secured an extended license from Germany’s Federal Financial Supervisory Authority (BaFin). This move comes amidst a wave of successful public market debuts for other crypto firms like Circle, Bullish, and Figure. The Trump administration's regulatory rollback, which reversed an SEC rule requiring banks to hold capital against crypto-related activity, has encouraged traditional financial institutions like US Bancorp to re-enter crypto custody, with Deutsche Bank and Citigroup also exploring similar services.
Background
Under the Trump administration, re-elected in November 2024, the U.S. regulatory environment for cryptocurrencies is undergoing a significant shift. Previously, the Securities and Exchange Commission (SEC) had implemented a rule requiring banks to hold capital against their crypto-related activities, which increased the compliance burden and cost for traditional financial institutions entering the digital asset space. However, the Trump administration's regulatory rollback has reversed this rule, significantly lowering the barriers for banks to offer cryptocurrency custody services. This policy change has already prompted major players like US Bancorp to relaunch their digital asset custody services and encouraged other global financial giants such as Deutsche Bank and Citigroup to explore or expand their crypto offerings, signaling an accelerating convergence of traditional finance with the digital asset sector.
In-Depth AI Insights
How is the Trump administration's regulatory stance reshaping institutional engagement in the crypto market? The Trump administration's crypto-friendly regulatory rollback, particularly the reversal of the SEC rule requiring banks to hold capital against crypto assets, is a critical catalyst for large-scale institutional adoption. This move significantly de-risks compliance and capital costs for traditional financial institutions, paving the way for them to enter or expand crypto custody services. BitGo's IPO, alongside traditional banks like US Bancorp re-entering the space, signals a shift where crypto is moving from a fringe asset to a critical component of mainstream financial infrastructure, attracting broader capital and expertise. What are the implications of BitGo's dual-class share structure for long-term investors? BitGo's dual-class share structure, which grants CEO Michael Belshe control through Class B shares, implies that long-term strategic vision can be prioritized over short-term market pressures. While this can foster more cohesive and innovative company development, it also introduces governance risks. Class A shareholders with limited voting power may face concerns regarding management accountability and potentially a valuation discount. Investors must weigh the potential benefits of stable leadership against the risks associated with diminished shareholder oversight. How will the influx of traditional financial institutions into crypto custody impact the competitive landscape for specialized firms like BitGo? The entry of traditional financial institutions, such as Deutsche Bank and Citigroup, presents both opportunities and challenges for specialized firms like BitGo. Opportunities arise from further validation of crypto as a legitimate asset class, expanding the potential client pool, and fostering potential partnerships. However, challenges stem from intense competition from banks with vast client bases, deep pockets, and extensive regulatory experience. BitGo, with its first-mover advantage and established crypto-native infrastructure, may focus on more complex institutional needs or specific technological niches, while traditional banks could capture broader corporate and high-net-worth clients. This could lead to specialization or industry consolidation, altering service pricing and market share distribution.