diff --git a/crates/common/src/observability/mod.rs b/crates/common/src/observability/mod.rs
index f112cd455..0fb9d0524 100644
--- a/crates/common/src/observability/mod.rs
+++ b/crates/common/src/observability/mod.rs
@@ -29,7 +29,7 @@
 //! #[tokio::main]
 //! async fn main() -> Result<(), Box<dyn std::error::Error>> {
 //!     // Initialize observability infrastructure
-//!     init_observability("trading_service", "http://localhost:4317").await?;
+//!     init_observability("trading_service", Some("http://localhost:4317"))?;
 //!
 //!     // Correlation IDs are automatically propagated via gRPC metadata
 //!     Ok(())
@@ -87,7 +87,8 @@ use crate::error::CommonResult;
 /// # Arguments
 ///
 /// * `service_name` - Name of the service (e.g., "api_gateway", "trading_service")
-/// * `otlp_endpoint` - OTLP collector endpoint (e.g., "http://localhost:4317")
+/// * `otlp_endpoint` - Optional OTLP collector endpoint (e.g., `Some("http://localhost:4317")`).
+///   When `None`, the OTLP tracing layer is disabled and only JSON logging is active.
 ///
 /// # Returns
 ///
@@ -100,15 +101,15 @@ use crate::error::CommonResult;
 ///
 /// #[tokio::main]
 /// async fn main() -> Result<(), Box<dyn std::error::Error>> {
-///     init_observability("trading_service", "http://localhost:4317").await?;
+///     init_observability("trading_service", Some("http://localhost:4317"))?;
 ///
 ///     // Service logic here...
 ///     Ok(())
 /// }
 /// ```
-pub async fn init_observability(
+pub fn init_observability(
     service_name: &str,
-    otlp_endpoint: &str,
+    otlp_endpoint: Option<&str>,
 ) -> CommonResult<()> {
     use tracing_subscriber::prelude::*;
 
@@ -129,8 +130,8 @@ pub async fn init_observability(
     // the `S` type parameter be inferred correctly by the compiler.
     let tracing_config = TracingConfig {
         service_name: service_name.to_string(),
-        otlp_endpoint: otlp_endpoint.to_string(),
-        enable_export: true,
+        otlp_endpoint: otlp_endpoint.unwrap_or_default().to_string(),
+        enable_export: otlp_endpoint.is_some(),
     };
     let otel_tracer = tracing_config::build_otel_tracer(&tracing_config);
     let otel_layer = otel_tracer
diff --git a/crates/web-gateway/src/main.rs b/crates/web-gateway/src/main.rs
index 047af22e3..94b3bf8fc 100644
--- a/crates/web-gateway/src/main.rs
+++ b/crates/web-gateway/src/main.rs
@@ -24,7 +24,7 @@ async fn main() -> Result<()> {
     // Initialize observability (JSON logging + OpenTelemetry tracing via OTLP)
     let otlp_endpoint = std::env::var("OTEL_EXPORTER_OTLP_ENDPOINT")
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
-    if let Err(e) = common::observability::init_observability("web_gateway", &otlp_endpoint).await {
+    if let Err(e) = common::observability::init_observability("web_gateway", Some(&otlp_endpoint)) {
         eprintln!("Failed to initialize observability: {}", e);
     }
 
diff --git a/services/api_gateway/src/main.rs b/services/api_gateway/src/main.rs
index 5c6d74179..4f5559dfc 100644
--- a/services/api_gateway/src/main.rs
+++ b/services/api_gateway/src/main.rs
@@ -58,7 +58,7 @@ async fn main() -> Result<()> {
     // Initialize observability (JSON logging + OpenTelemetry tracing via OTLP)
     let otlp_endpoint = std::env::var("OTEL_EXPORTER_OTLP_ENDPOINT")
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
-    if let Err(e) = common::observability::init_observability("api_gateway", &otlp_endpoint).await {
+    if let Err(e) = common::observability::init_observability("api_gateway", Some(&otlp_endpoint)) {
         eprintln!("Failed to initialize observability: {}", e);
     }
 
diff --git a/services/backtesting_service/src/main.rs b/services/backtesting_service/src/main.rs
index bff1a40e4..2ba7d1608 100644
--- a/services/backtesting_service/src/main.rs
+++ b/services/backtesting_service/src/main.rs
@@ -38,8 +38,8 @@ async fn main() -> Result<()> {
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
     if let Err(e) = common::observability::init_observability(
         "backtesting_service",
-        &otlp_endpoint,
-    ).await {
+        Some(&otlp_endpoint),
+    ) {
         eprintln!("Failed to initialize observability: {}", e);
     }
 
diff --git a/services/broker_gateway_service/src/main.rs b/services/broker_gateway_service/src/main.rs
index 63ae4f1a4..b9b24f4c7 100644
--- a/services/broker_gateway_service/src/main.rs
+++ b/services/broker_gateway_service/src/main.rs
@@ -24,7 +24,7 @@ async fn main() -> Result<()> {
     // Initialize observability (JSON logging + OpenTelemetry tracing via OTLP)
     let otlp_endpoint = std::env::var("OTEL_EXPORTER_OTLP_ENDPOINT")
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
-    if let Err(e) = common::observability::init_observability("broker_gateway", &otlp_endpoint).await {
+    if let Err(e) = common::observability::init_observability("broker_gateway", Some(&otlp_endpoint)) {
         eprintln!("Failed to initialize observability: {}", e);
     }
 
diff --git a/services/data_acquisition_service/src/main.rs b/services/data_acquisition_service/src/main.rs
index 032ccb381..e2a37a73c 100644
--- a/services/data_acquisition_service/src/main.rs
+++ b/services/data_acquisition_service/src/main.rs
@@ -37,7 +37,7 @@ async fn main() -> Result<(), Box<dyn std::error::Error>> {
     // Initialize observability (JSON logging + OpenTelemetry tracing via OTLP)
     let otlp_endpoint = std::env::var("OTEL_EXPORTER_OTLP_ENDPOINT")
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
-    if let Err(e) = common::observability::init_observability("data_acquisition", &otlp_endpoint).await {
+    if let Err(e) = common::observability::init_observability("data_acquisition", Some(&otlp_endpoint)) {
         eprintln!("Failed to initialize observability: {}", e);
     }
 
diff --git a/services/ml_training_service/src/main.rs b/services/ml_training_service/src/main.rs
index 95b84fe9d..1431f445c 100644
--- a/services/ml_training_service/src/main.rs
+++ b/services/ml_training_service/src/main.rs
@@ -134,8 +134,8 @@ async fn serve(args: ServeArgs) -> Result<()> {
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
     if let Err(e) = common::observability::init_observability(
         "ml_training_service",
-        &otlp_endpoint,
-    ).await {
+        Some(&otlp_endpoint),
+    ) {
         eprintln!("Failed to initialize observability: {}", e);
     }
 
diff --git a/services/trading_agent_service/src/main.rs b/services/trading_agent_service/src/main.rs
index 41a11174c..8d0cab5fe 100644
--- a/services/trading_agent_service/src/main.rs
+++ b/services/trading_agent_service/src/main.rs
@@ -31,7 +31,7 @@ async fn main() -> Result<()> {
     // Initialize observability (JSON logging + OpenTelemetry tracing via OTLP)
     let otlp_endpoint = std::env::var("OTEL_EXPORTER_OTLP_ENDPOINT")
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
-    if let Err(e) = common::observability::init_observability("trading_agent", &otlp_endpoint).await {
+    if let Err(e) = common::observability::init_observability("trading_agent", Some(&otlp_endpoint)) {
         eprintln!("Failed to initialize observability: {}", e);
     }
 
diff --git a/services/trading_service/src/main.rs b/services/trading_service/src/main.rs
index debc9a023..eaec79df6 100644
--- a/services/trading_service/src/main.rs
+++ b/services/trading_service/src/main.rs
@@ -56,8 +56,8 @@ async fn main() -> Result<()> {
         .unwrap_or_else(|_| "http://localhost:4317".to_string());
     if let Err(e) = common::observability::init_observability(
         "trading_service",
-        &otlp_endpoint,
-    ).await {
+        Some(&otlp_endpoint),
+    ) {
         eprintln!("Failed to initialize observability: {}", e);
     }