BridgeTower Capital to Onramp Lido, Offers Security Token For Avalanche’s Staking Rewards

BridgeTower Capital, which operates more than 8,000 validator nodes running on 100% renewable energy, is deepening its roots in the crypto ecosystem through its focus on regulatory compliance.

On Wednesday, BridgeTower Capital announced its turnkey onramp that connects financial institutions to Lido’s staking infrastructure and a security token that allows institutional investors to participate in layer 1 blockchain Avalanche’s staking rewards.

Through BridgeTower’s regulated marketplace, institutional investors can complete their know-your-customer process, have a delegated, whitelisted wallet, stake their ether (ETH) straight into Lido’s system. BridgeTower’s integration with Lido’s ecosystem is fully automated and allows investors to take advantage of Lido’s staking infrastructure in ways that are consistent with regulatory standards.

The blockchain technology firm is also offering a security token, a new product that allows purchasers to receive rewards associated with Avalanche’s staked AVAX token. By collaborating with Securitize, a regulatory-compliant platform for issuing digital asset securities, BridgeTower is offering a security token that represents staked AVAX and sits on a regulated exchange.

When an institutional investor purchases a security token, BridgeTower delegates a wallet that receives Avalanche’s staking rewards to the institutional investor. “This is a way to get full access to a staked token through a security,” said Cory Pugh, CEO of BridgeTower Capital, in an interview with CoinDesk.

According to BridgeTower’s press release, “Rewards will be custodied on behalf of investors and, upon completion of the lock-up period, will be distributed to an investor wallet created by Circle.” Moreover, BridgeTower will use Chainlink’s Proof of Reserve service to monitor and verify the balance of an investor’s wallet and relay that information to their investment dashboard as on-chain proof.

To work through the SEC and ensure BridgeTower’s products met all regulations, BridgeTower’s legal department included their own in-house attorney, Securitize’s attorneys and an outside legal firm, according to Pugh.

Please note that our privacy policyterms of usecookiesdo not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.