BitGo has agreed to buy the institutional trading business and related assets of NYDIG, a move that adds major capital markets capabilities to the crypto infrastructure firm just as Bitcoin has climbed sharply from a prolonged slump, according to CNBC.
The deal will bring derivatives, structured products, financing, and other capital markets services under the BitGo umbrella. About 30 employees from NYDIG are expected to join BitGo along with roughly 250 institutional client relationships. Terms of the deal were not immediately available.
BitGo is based in Sioux Falls, South Dakota, and went public at the start of this year. Its market value is currently less than $1 billion. Despite that relatively small public profile, the company has operated in institutional crypto since 2013, making it one of the earliest players in crypto custody and infrastructure.
NYDIG's institutional trading business serves asset managers, hedge funds, corporations, family offices, and other large investors, with a focus on derivatives, financing, and customized trading strategies. Those clients and services will now move to BitGo.
The acquisition comes at a notable moment for the crypto industry. Bitcoin rose more than 20% over the past week and briefly topped $80,000 on Tuesday, ending several months of weak trading volume and limited investor participation. The deal is being seen as one of the first signs of a broader rebound in crypto trading after the latest stretch of what the industry calls crypto winter.
The move also points to a broader shift inside the industry. Rather than competing around crypto as an asset class, companies like BitGo are positioning themselves around infrastructure that serves institutions. The expansion of custody, settlement, and capital markets services reflects where institutional demand is heading as markets recover.
BitGo's acquisition of the NYDIG trading unit is one of the more concrete steps a crypto firm has taken to prepare for a continued recovery, and it signals that institutional players are beginning to move again after a long period of caution.