Crypto Currents: BitGo files for IPO as companies pivot to crypto

A busy weekend in the digital asset space was highlighted by a major IPO filing from crypto custody firm BitGo and a significant real-world adoption story out of South America, where major automakers are now accepting stablecoins. Meanwhile, two publicly traded companies announced major pivots into the crypto and Web3 space. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2 PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio. Also, subscribe to our YouTube channel for the Crypto Fly By weekly recap.

BITGO FILES FOR INITIAL PUBLIC OFFERING: Crypto custody firm BitGo has officially filed for a U.S. initial public offering, according to an S-1 registration statement filed with the SEC on Friday. The company, which reports approximately $90.3B in assets on its platform, intends to list its stock on the New York Stock Exchange under the ticker symbol “BTGO”.

ADOPTION MEETS REGULATION: In a landmark moment for real-world crypto adoption, three major vehicle manufacturers have started accepting the stablecoin Tether (USDT-USD) for payments in Bolivia. Cointelegraph reports that Toyota (TM), Yamaha (YAMHF), and BYD (BYDDF) are using the stablecoin to navigate the country’s shrinking U.S. dollar reserves. BitGo, in a timely connection to its IPO news, confirmed it is partnering with the firms to provide custody solutions for the transactions. In the U.S., the CFTC is tapping Wall Street veterans to help guide its crypto policy. The agency announced that executives from JPMorgan (JPM), Franklin Templeton (BEN), and BNY Mellon (BK) will join its Digital Asset Markets Subcommittee, signaling deeper collaboration between traditional finance and regulators.

COMPANIES PIVOT TO CRYPTO AND AI: In a trend of strategic shifts, multiple publicly traded companies from unrelated sectors are pivoting into blockchain and artificial intelligence. Cannabis company Flora Growth (FLGC) announced a major move into the space, sending its shares surging nearly 70% in after-hours trading. As reported by Coindoo, the company unveiled a $401M financing deal to rebrand as ZeroStack. The deal, backed by investors including DeFi Development (DFDV) and Hexstone Capital, involves $35M in cash, with the remainder in digital assets. The new entity plans to build a decentralized operating system for training large AI models, will be the first public firm to hold the 0G token from Zero Gravity Labs, and will add solana (SOL-USD) to its treasury.

Separately, biotech firm Qualigen Therapeutics (QLGN) is also rebranding for a Web3 focus. According to a press release, Faraday Future is investing $41M in Qualigen, which will be renamed CXC10. The new entity will pivot to develop a crypto index/ETF, a Web3 gateway, and a stablecoin, with Faraday Future founder Jia Yueting serving as Chief Advisor.

CRYPTO EXCHANGE UPDATES: Coinbase (COIN) CEO Brian Armstrong detailed his long-term goal to evolve the exchange into a financial “super app” that could serve as a primary financial account for users. In an interview with Fox Business, Armstrong said Coinbase intends to integrate services typically offered by banks and deliver them on crypto rails, also suggesting that bitcoin (BTC-USD) could reach $1M by 2030. Elsewhere, Crypto.com is pushing back against a Bloomberg report detailing a previously undisclosed data breach, stating the incident affected “a very small number of individuals” and that no customer funds were accessed. Meanwhile, the FTX Recovery Trust announced Friday that it will distribute another $1.6B to creditors of the collapsed exchange on September 30, according to Decrypt.

INSTITUTIONAL AND ETF DEVELOPMENTS: The institutional embrace of crypto continues to be profitable, as BlackRock (BLK) has reportedly generated over $260M in revenue from its bitcoin and ether (ETH-USD) ETFs in less than two years. In a similar vein, Grayscale submitted a revised S-1 filing in its effort to convert its dogecoin trust into a spot Dogecoin (DOGE-USD) ETF, naming Coinbase as custodian.

PRICE ACTION: As of time of writing, bitcoin (BTC-USD) was trading at $112,909.26, while ether (ETH-USD) was trading at $4,182.33, according to price data from CoinDesk.