BitGo has introduced a unified financing capability through its prime brokerage unit, combining borrowing, lending, and collateral management within a single platform.
The launch targets institutional clients seeking access to liquidity without moving assets across multiple providers, addressing fragmentation in digital asset financing workflows.
Consolidating Financing Workflows
The platform integrates borrowing and lending functions directly into BitGo’s existing infrastructure, allowing institutions to manage financing alongside custody and trading activity.
Historically, firms have relied on multiple counterparties for loans, collateral management, and execution, often requiring manual coordination and asset transfers. The new system aims to reduce these operational steps.
Mike Belshe, Chief Executive Officer and Co-founder of BitGo, commented, “Institutions require financing that fits how they manage capital and risk. Integrating these capabilities into a single platform simplifies access to liquidity.”
Support for Portfolio-Based Financing
The offering includes portfolio-based financing, where borrowing capacity is determined by the overall composition of assets held within a client account rather than a single collateral position.
This structure allows institutions to manage liquidity across multiple assets, adjusting exposure as portfolio allocations change over time.
Eligible collateral includes liquid tokens such as bitcoin, ether, and stablecoins, as well as more complex positions including locked tokens and staked assets.
Extending Financing to Staked and Locked Assets
The platform enables clients to borrow against assets that are typically less accessible for financing, such as tokens held in staking programs or subject to lock-up conditions.
These assets remain in custody while being used as collateral, allowing institutions to maintain long-term positions while accessing short-term liquidity.
This approach reflects increasing demand for capital efficiency, where firms seek to utilize a broader range of holdings within financing strategies.
On-Platform Lending and Treasury Use Cases
In addition to borrowing, the platform allows clients to lend eligible assets, supporting treasury and yield strategies within the same system.
Funds obtained through financing can be deployed for trading or operational needs, depending on client requirements and risk parameters.
Adam Sporn, Head of Prime Brokerage and Institutional Sales at BitGo, commented, “Clients are looking for flexible financing options combined with operational control. Integrating these capabilities into the platform addresses that need.”
Implications for Digital Asset Market Structure
The introduction of integrated financing reflects a broader shift toward consolidation in digital asset infrastructure, where firms aim to offer custody, trading, and financing within unified environments.
This model can reduce operational complexity but also increases reliance on single providers for multiple services.
Institutional adoption of digital assets has increased demand for financing solutions that align with traditional capital markets practices, including collateral management and portfolio-level risk assessment.
The development indicates continued convergence between digital asset platforms and established financial infrastructure, particularly in areas related to liquidity and capital efficiency.
