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.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC consolidates while ETH and XRP show some strength
Bitcoin (BTC) consolidated between $94,000 and $100,000 in the last nine days. Ethereum (ETH) and Ripple (XRP) prices stood relatively stronger and have gained nearly 3% and 7%, respectively, this week.

Trump's US reciprocal tariffs pause fails to improve Bitcoin and crypto market outlook
Bitcoin (BTC) and top cryptos halted their declines following a pause in President Donald Trump's reciprocal tariff plans, which were originally scheduled to go live on Thursday.

Ripple vs SEC battle nears end as the regulator acknowledges Grayscale XRP ETF filing
Ripple's XRP is up 4% in the early hours of Friday following the Securities and Exchange Commission (SEC) acknowledgment of Grayscale's 19b-4 filing to convert its XRP Trust to an ETF.

200,000 New Investors Buy Ripple (XRP) 30-Days After Gensler’s Farewell: What Next for Stellar (XLM)?
Ripple (XRP) price consolidated around $2.40 on Thursday, up 11% since Monday, technical indicators suggest Stellar (XLM) has joined the rally.

Bitcoin: BTC consolidates before a big move
Bitcoin's (BTC) price has been consolidating between $94,000 and $100,000 for the last ten days, and, when writing on Friday, it hovers around $97,000. Despite this consolidation, US Bitcoin spot Exchange Traded Funds (ETFs) data recorded a total net outflow of $650.80 million until Thursday, hinting signs of weakness among institutional investors.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.