New York – Chen Fang, a prominent figure at BitGo, a leading digital asset infrastructure provider, has publicly cautioned companies against partnering with Coinbase, asserting that such collaborations could inadvertently fund a competitor. In a recent tweet, Fang stated, "Wall Street understands @BitGo is THE digital asset infrastructure company, whereas Coinbase is a US retail exchange trying hard to pivot into doing more." This statement highlights the growing competitive tension in the institutional cryptocurrency market.
Fang further elaborated on the perceived risk, adding, "What people fail to understand is — at some point — Coinbase will compete with you. Partnering with Coinbase to unlock additional capabilities is literally funding your competition." This perspective underscores BitGo's position as a dedicated institutional-grade solution, emphasizing its comprehensive suite of services including secure wallets, qualified custody, staking, trading, and settlement, particularly through its Go Network. BitGo, founded in 2013, has established itself as a critical backend provider, handling a significant portion of Bitcoin network transactions and serving over 1,500 institutions globally.
Coinbase, initially known for its dominant retail exchange platform, has aggressively expanded its offerings to institutional clients through services like Coinbase Prime and Coinbase Custody. The company reported serving thousands of institutions and ecosystem partners, demonstrating its diversified business model beyond individual users. While Coinbase generates substantial revenue from transaction fees across both retail and institutional segments, BitGo focuses exclusively on the institutional market, providing regulated and secure infrastructure.
The remarks come as BitGo confidentially filed for a U.S. Initial Public Offering (IPO) in Q2 2025, signaling its readiness to scale and capitalize on increasing institutional demand and regulatory clarity in the crypto space. This move positions BitGo to further solidify its standing as a pure-play institutional crypto stock. The company recently expanded its Go Network Off-Exchange Settlement (OES) platform, integrating major exchanges like HTX, KuCoin, and Gate.io to provide secure, real-time settlement for institutional clients.
The competitive rhetoric from BitGo's executive reflects the evolving landscape of the digital asset industry, where specialized infrastructure providers like BitGo are vying for market share against broader platforms like Coinbase that serve both retail and institutional needs. As institutional adoption of digital assets accelerates, the strategic choices regarding infrastructure partners are becoming increasingly critical for market participants.