BitGo’s first day on the New York Stock Exchange was not just another IPO. It was a signal that Wall Street is once again willing to place real bets on crypto, provided the business is grounded in infrastructure, regulation, and steady revenue rather than hype.

 

The digital asset custody firm began trading under the ticker BTGO after pricing its IPO at $18 per share, above its expected range. That pricing put BitGo’s valuation at roughly $2 billion, with early trading pushing the figure even higher as shares jumped shortly after the opening bell.

 

For an industry that has spent the past two years navigating regulatory pressure, market volatility, and investor fatigue, BitGo’s reception felt like a turning point.

 

A Different Kind of Crypto Company

Founded in 2013 by Mike Belshe, BitGo is not a trading platform or a token issuer. Its business sits deeper in the crypto stack. The company provides custody, wallet infrastructure, staking services, and institutional trading tools for hedge funds, asset managers, exchanges, and other large crypto holders.

 

At the time of its public debut, BitGo was safeguarding close to $100 billion in digital assets. That scale matters. Custody is one of the few crypto businesses that can grow regardless of whether bitcoin is rising or falling, as long as institutions remain involved.

 

This infrastructure-first model has increasingly appealed to traditional investors who want exposure to digital assets without directly touching price risk.

 

Strong Demand at the Open

BitGo sold roughly 11.8 million Class A shares, raising just over $200 million in gross proceeds. Demand was strong enough that the deal priced above its initial range, a notable outcome given the cautious tone that has defined much of the IPO market over the past year.

 

Once trading began, shares quickly moved higher, at one point climbing more than 20 percent. That early momentum pushed BitGo’s market capitalization closer to $2.5 billion, at least on paper, reinforcing the view that institutional investors see value in crypto plumbing even when token prices are under pressure.

 

Regulation as a Selling Point

Part of BitGo’s appeal comes from its long-running focus on compliance. The company has spent years positioning itself as a bridge between crypto markets and traditional finance.

 

Late last year, BitGo received conditional approval to operate as a federally regulated trust bank in the United States. That status allows it to offer custody services nationwide under a single regulatory framework, rather than navigating a patchwork of state licenses.

 

In an industry often criticized for moving faster than regulators can respond, BitGo’s willingness to work within existing rules has become a competitive advantage.

 

A Test Case for Crypto IPOs

BitGo is widely viewed as the first major crypto IPO of 2026, and its performance is already being watched closely by other companies considering public listings.

 

Over the past year, several crypto firms have quietly prepared for IPOs, waiting for a moment when investor sentiment improved. BitGo’s debut suggests that moment may be arriving, at least for firms with mature business models and predictable revenue streams.

 

Market analysts have also pointed to a broader reopening of the IPO window across technology, fintech, and artificial intelligence. Crypto may not lead that wave, but BitGo’s success shows it is no longer sidelined either.

 

Financial Momentum Behind the Story

Behind the market excitement is a company that has quietly improved its financial position. BitGo reported strong revenue growth heading into its IPO, with custody, staking, and institutional services driving recurring income. The company also posted periods of profitability in recent years, a rarity among crypto-native firms.

 

That financial discipline likely helped reassure investors who remain wary after previous cycles of overleveraged crypto startups and sudden collapses.

 

What It Means for the Industry

BitGo’s NYSE debut sends a clear message. Crypto infrastructure, when paired with regulation and institutional demand, can still command investor confidence.

 

The listing does not mean the industry’s challenges are over. Regulatory clarity remains incomplete, and market volatility is never far away. But BitGo’s reception suggests that public markets are willing to reward companies building the backbone of digital finance, even if they remain cautious about the assets themselves.

 

For now, BitGo has become a benchmark. Its performance in the months ahead may determine whether other crypto firms follow it onto Wall Street or return to waiting on the sidelines.

Kraken Moves Deeper Into Tokenized Equities With Backed Finance Acquisition

Kraken is making a major push into the tokenization market with its agreement to acquire Backed Finance, the company behind the xStocks product line.

This move gives Kraken full control over a growing category of tokenized equities and positions the exchange for rapid expansion as it prepares for a public listing.

 

A Strategic Acquisition With Clear Intent

Backed Finance specializes in issuing tokens tied to real world assets, mainly public company stocks and ETFs. These assets are backed by real shares held in custody, allowing users to hold digital representations of traditional securities inside a blockchain environment.

By bringing Backed Finance in house, Kraken gains control over the entire tokenization stack. Issuance, collateral, custody, compliance, and product architecture will all operate under one roof. This eliminates reliance on an external provider and strengthens Kraken’s ability to innovate and scale. The exchange has been building aggressively in Europe and other global markets, and the acquisition aligns with its larger ambition to make tokenized securities a core part of its ecosystem.

 

Why Kraken Is Doubling Down on Tokenization

Tokenized assets have gained momentum as traders and institutions look for a more flexible way to access traditional financial instruments. The benefit is simple. Stocks can be traded on chain, around the clock, with global reach and fewer barriers.

Kraken’s recent capital raise brought its valuation to roughly twenty billion dollars. The company has been preparing for a public offering targeted for 2026, and expanding into real world asset tokenization helps diversify its revenue streams before going public. Backed Finance already holds meaningful market share in the tokenized equity space, which gives Kraken a strong foundation to build on.

The acquisition formalizes a partnership Kraken has spent the past year expanding. Backed has powered xStocks since launch, supporting products that have now generated more than $5 billion in cumulative trading volume on Kraken. 

 

The Broader Market Context

Interest in real world asset tokenization has surged through 2025, but the sector still faces challenges. Liquidity varies widely across tokenized securities. Some assets trade actively, while others see thin volume. This raises questions about whether tokenization alone can deliver deeper markets.

Regulatory frameworks are also evolving. Tokenized shares do not always offer the same rights as traditional equities, such as voting or regular dividend distribution. As more platforms introduce tokenized stocks, market fragmentation becomes a risk, since liquidity can spread across multiple chains and issuers.

These challenges do not diminish the potential, but they highlight the need for stronger standards, clearer rules, and well capitalized issuers.

 

What This Means for the Future

Kraken’s acquisition signals that tokenized equities are becoming a long term strategic priority rather than a side experiment. If successful, Kraken could set the standard for a hybrid financial model where traditional assets move seamlessly across blockchain infrastructure.

BlackRock executives Larry Fink and Rob Goldstein recently said tokenization could reshape financial markets as profoundly as the early internet reshaped information.

Kraken's users may gain access to more global equities, greater flexibility, fractional ownership, and always available markets. Institutions may find a more programmable way to issue and settle securities. The industry may see a blueprint for bridging regulated markets with decentralized technology.

 

The path will not be simple. Liquidity, compliance, and investor protections will remain central areas of focus. However, Kraken’s move shows that major players believe the future of equities includes both traditional exchanges and blockchain based markets working together.

 

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