BitGo, a digital asset infrastructure provider, has launched a new financing platform designed for institutional clients. The system allows users to borrow and lend against a range of digital assets — including liquid tokens, staked positions, and locked holdings — all within a single account. The platform consolidates borrowing, lending, and collateral management into one unified workflow. This replaces processes that have traditionally required multiple counterparties and manual asset transfers.
A key feature of the platform is portfolio-based lending, which allows institutions to access credit against a mix of assets held in custody rather than posting collateral on a per-loan basis. The system also supports loans backed by staked and locked tokens, meaning institutions can use those positions as collateral without unwinding them. Clients retain visibility and control over assets throughout the process. Eligible assets for financing include Bitcoin, Ether, Solana, and stablecoins.
All financing activity takes place within BitGo’s custody environment, with collateral held in segregated wallets. Institutional clients can also lend eligible assets through the same account, deploying capital for yield or accessing liquidity for trading and treasury purposes. Funds obtained through the platform can be directed toward trading via BitGo’s brokerage services or applied to broader capital management needs. The integrated structure is intended to reduce operational complexity for institutional participants.
The launch comes as Bitcoin-backed lending has expanded significantly across the digital asset market over the past year. Exchanges, decentralized finance protocols, and institutional entities have increasingly moved to offer credit against crypto holdings. In November, Mezo and Anchorage Digital began offering institutional clients Bitcoin-backed stablecoin loans and short-term yield strategies, enabling borrowing against BTC held in custody while earning tokenized rewards through locked positions.
Major exchanges have also entered the space. In January, Coinbase relaunched its Bitcoin-backed lending service in the United States after a 16-month pause, allowing users to borrow up to $100,000 in USDC against BTC via Morpho on its Base network. In February, Kraken introduced Flexline, a crypto-backed loan product offering fixed terms ranging from two days to two years for advanced users. These moves reflect growing demand for credit products tied to digital asset holdings.
At the institutional level, the broader infrastructure is shifting toward custody-integrated models. In March, Lombard and Bitwise Asset Management announced plans to develop systems that would allow institutions to earn yield and borrow against Bitcoin held in custody without moving the underlying assets. Separately, Babylon Labs recently integrated with Ledger to enable BTC to be locked into programmable vaults while remaining in self-custody, a structure that could support lending and yield strategies. These parallel developments point to an expanding role for Bitcoin within institutional financial applications.
Originally reported by CoinTelegraph.
