BitGo Buys NYDIG Trading Arm to Expand Derivatives

BitGo, best known as a digital-asset custodian serving institutional clients, is expanding further into capital markets by acquiring NYDIG’s institutional trading business. The deal gives BitGo additional capabilities in derivatives, financing and trade execution, complementing its custody platform as professional investors seek integrated services for holding, hedging and deploying crypto assets.

BitGo agreed to pay $42.5 million in cash and stock for the NYDIG unit, with a further earnout of as much as $15 million, taking the potential value to $57.5 million. About 30 NYDIG employees are joining BitGo as part of the transaction, bringing established institutional trading relationships that will support the buyer’s expanded derivatives and financing offering.