BitGo and OTC Markets Group are pursuing a partnership to support about 150 broker-dealers in trading, settling and custodying digital asset securities.
A recent Cointelegraph report said that if the partnership is implemented, broker-dealers would be able to use the same electronic infrastructure they currently use for over-the-counter securities and U.S. stock trading to quote, trade and settle digital asset securities.
The proposal focuses on combining the SEC-regulated alternative trading system OTC Link ATS with BitGo’s custody infrastructure. BitGo Bank and Trust will serve as the qualified custodian, and settlement will be carried out through the BitGo Go Network.
The two companies plan to first support digital asset securities, and they are reviewing ways to expand the scope to tokenised assets and commodities in line with changes in the regulatory framework.
BitGo received final approval in December last year from the Office of the Comptroller of the Currency to operate a federally chartered national trust bank. It can now provide qualified custody services under the federal banking supervisory framework.
Chi-gyu Hwang
delight@d-today.co.kr