At Consensus Hong Kong 2025, Belsche and Tom Farley talked about how IPOs enhance transparency and credibility. Amid speculation of its own public listing, BitGo launched an OTC trading desk to meet rising institutional demand. Meanwhile, Gemini is also exploring an IPO, despite its past regulatory challenges.
Public Listings Key to Trust and Transparency
BitGo CEO Mike Belsche believes that public listings for crypto companies are essential to help create trust in digital assets and engage with traditional financial institutions. At Consensus Hong Kong 2025 on Feb. 19, Belsche stated that going public is a necessary step for crypto firms who want to interact with Wall Street. He specifically pointed to the failure of FTX as an example of what happens when Wall Street firms try to engage with private crypto entities without adequate due diligence.
Some Consensus Hong Kong 2025 speakers
Belsche mentioned that financial institutions learned the importance of thorough scrutiny and compliance with regulatory frameworks, particularly those enforced by the Securities and Exchange Commission (SEC). He described the transition to public markets as an inevitable step for major players in the industry.
Bullish CEO Tom Farley, whose own crypto exchange is reportedly preparing for a public offering, agreed with Belsche’s thoughts. He argued that being listed on a well-respected public market allows possible investors to see a firm’s commitment to transparency and provides reassurance to investors. While neither executive confirmed specific plans for an IPO, they both agreed that public listings could greatly enhance the credibility of major crypto firms.
Beyond discussions on public offerings, the executives also commented on the changing regulatory landscape for digital assets under Donald Trump’s administration. Belsche talked about the potential for major policy shifts, given that both the House and Senate are now under Republican control. He is very optimistic about the prospect of pro-crypto appointments at the SEC and the Commodity Futures Trading Commission, and suggested that regulatory changes could take time but will bring meaningful improvements for the industry.
Trump’s pro-crypto SEC Chair nominee (Source: Truth Social)
BitGo Unveils OTC Desk Amid Public Listing Speculation
BitGo launched a global over-the-counter trading desk for digital assets as reposts suggest the company is getting ready for an initial public offering later this year. The new desk integrates multiple liquidity sources, including exchanges, and provides access to spot and derivatives trading across more than 250 digital assets. It also offers lending services and yield-generating products.
BitGo announcement
The expansion is happening at a time when there is a surge in institutional crypto OTC trading, which saw a 106% increase in 2024. The growth was largely driven by US President Donald Trump’s election victory and rising demand for US spot crypto exchange-traded funds (ETFs). Matt Ballensweig, BitGo’s managing director, shared that the new desk allows clients to execute trades across various markets while keeping their assets secure in qualified custody until settlement.
BitGo’s platform includes $250 million in insurance coverage and provides venture capitalists and hedge funds with opportunities to buy and sell locked layer-1 tokens. The launch follows the company’s December announcement of a global version of its digital asset solutions tailored for retail investors, including trading, staking, and wallet services.
Reports from Bloomberg on Feb. 11 indicated that BitGo has been in discussions with investment banks about a potential public listing in the second half of 2025. However, these plans are still under consideration, and no final decision has been confirmed. If the company moves forward with an IPO, it could join other major crypto firms eyeing the public equity markets.
Bitwise IPO predictions for 2025 (Source: Bitwise)
Bitwise predicted in December that at least five crypto unicorns would go public in 2025, including stablecoin issuer Circle, crypto exchanges Kraken and Figure, crypto bank Anchorage Digital, and blockchain analytics firm Chainalysis. The trend picked up steam after Coinbase’s landmark decision in 2021 to go public on Nasdaq, which set a precedent for other major players in the crypto industry. BitGo currently claims to have $100 billion in assets under custody.
Gemini Also Eyes IPO
The founders of crypto exchange Gemini, Tyler and Cameron Winklevoss, revealed earlier this month that they are reportedly considering an initial public offering as early as this year. Gemini initially explored a public listing in 2021 and is now in discussions with potential advisers about a possible listing, according to a Feb. 6 report from Bloomberg. However, deliberations are still ongoing, and no final decisions have been made yet.
The Winklevoss brothers previously indicated that they were open to an IPO, and stated in early 2021 that they were monitoring market conditions and having internal discussions on whether it made sense at the time. Gemini also previously considered merging with Digital Currency Group to create a major player in the crypto custody space, but the deal ultimately fell through. Barry Silbert, the CEO of Digital Currency Group, claimed that the merger could have positioned the companies to compete with major exchanges like Coinbase and FTX, but both firms later faced financial struggles. Digital Currency Group eventually filed for bankruptcy in late 2022.
In addition to exploring a public listing, Gemini has been dealing with regulatory and legal challenges. In January, the exchange agreed to pay $5 million to settle a lawsuit with the US commodities regulator over allegations of making false or misleading statements about its 2017 bid to launch the first US-regulated Bitcoin futures contract. The settlement was reached without an admission of liability.
NY Department of Financial Services announcement
Gemini also facilitated the return of approximately $1.1 billion to customers that were affected by the bankruptcy of Genesis Global Capital, which managed the Gemini Earn Program. Additionally, the platform paid a $37 million penalty for compliance failures that regulators claimed posed risks to the company’s stability.
Hong Kong Pledges Open Market for Crypto Growth
Some people believe crypto companies should broaden their horizons beyond Wall Street. At Consensus 2025, Hong Kong’s financial secretary Paul Chen Mo-po stated that Hong Kong will continue to provide a stable and dynamic environment for digital assets. He specifically pointed out the city’s investments in infrastructure and talent development, pointing to the role of Cyberport and Science Park as hubs for Web3 innovation and fintech. He also mentioned that collaborations between universities and the industry are fostering a new generation of blockchain experts.
Hong Kong has long aimed to establish itself as a leader in financial innovation, with its state-backed Cyberport Web3 network growing rapidly. The initiative was designed to promote digital asset innovation, and now hosts more than 270 blockchain firms, adding over 120 companies in the past 17 months. The city also introduced several regulatory proposals to attract investment, including tax exemptions on crypto gains for hedge funds, private equity, and family offices.
According to Mo-po, a successful digital asset ecosystem relies on a regulatory approach that is open, fair, and forward-looking while still supporting responsible financial innovation. However, despite Hong Kong’s efforts to foster a regulated crypto sector, the Securities and Futures Commission issued only nine operational crypto licenses since launching its licensing framework last year. The latest approvals were granted in January to Hong Kong-based exchanges PantherTrade and YAX.
This article was originally Posted on Coinpaper.com
