BitGo CEO Wants Prime Brokerage to Be 100% of Revenue

There is a change coming at BitGo. It is not a new coin or a new exchange listing. It is a change to what the company charges for.

The U.S. crypto custodian wants prime brokerage to become the main engine of its business. Co-founder and CEO Mike Belshe said in a Singapore interview that he wants prime brokerage to be the entire revenue base. That is a goal of 100% of revenue.

Why a custody fee feels like a tax

BitGo wants to help clients make money rather than charge for custody. Belshe put it plainly in an interview with Bloomberg.

We want to help you make money rather than be a cost center. Nobody wants to pay for custody. We don’t want to charge you for custody.

It is a simple idea, but it changes the relationship between the firm and its customers. Right now, custody feels like an expense you budget for. Prime brokerage feels like a place that helps you work with your money.

What prime brokerage means here

For BitGo, the term means letting clients keep assets with a custodian while trading on the same platform. They can borrow against those holdings and settle transactions in one place.

Adam Sporn, Head of Prime Brokerage and U.S. Institutional Sales, said institutions want infrastructure that simplifies how they operate. They do not want to stitch together multiple providers for liquidity, financing, collateral, settlement and asset security.

The pressure behind the pivot

BitGo has more than 6,000 clients. It launched BitGo Prime in 2020 and this year expanded its financial services. That includes adding single-point access to liquidity from exchanges and market makers.

Competition is intensifying as traditional financial institutions enter crypto custody. BNY Mellon, DBS Bank and U.S. Bank already offer services. Deutsche Bank is also preparing to launch related services.

What stays the same

Belshe noted that some customers may still need standalone custody services. Exchange-traded funds that simply hold Bitcoin are one example.

There is no timeline for reaching the prime-brokerage goal. Belshe did not provide a specific date. And the current split between custody fees and prime-brokerage income is not disclosed.

That leaves one honest question for now. Does the shift help the clients who already use the platform? The team says the pricing model is a natural progression from custodying assets, lending against them and offering trading. Whether the results arrive remains to be seen.