By its emphasis on regulatory compliance, BridgeTower Capital, which runs more than 8,000 validator nodes using only 100% renewable energy, is strengthening its ties to the cryptocurrency industry.
On Wednesday, BridgeTower Capital unveiled a security token that enables institutional investors can take part in layer 1 blockchain Avalanche’s staking incentives as well as a turnkey onramp that links financial institutions to Lido’s staking infrastructure.
Institutional investors may complete their know-your-customer procedure, have a delegated, whitelisted wallet, and stake their ether (ETH) directly into Lido’s system via BridgeTower’s regulated marketplace. Fully automated BridgeTower integration with Lido’s ecosystem enables investors to use Lido’s staking infrastructure in ways compliant with legal requirements.
The blockchain technology company is also selling security tokens, a brand-new item that enables buyers to get benefits connected to Avalanche’s staked AVAX token. BridgeTower is providing a security token that reflects staked AVAX and is listed on a regulated exchange by working with Securitize, a platform that complies with regulations for issuing digital asset securities.
When an institutional investor buys a security token, BridgeTower assigns the investor a wallet that will receive staking payments from Avalanche. In an interview with CoinDesk, Cory Pugh, CEO of BridgeTower Capital, said: “This is a means to acquire complete access to a staked token via a security.
In line with the press release from BridgeTower, “Rewards will be custodied on behalf of investors and, following conclusion of the lock-up period, will be delivered to an investor wallet established by Circle.” Moreover, BridgeTower will monitor and confirm an investor’s wallet balance using Chainlink’s Proof of Reserve service before relaying that information to their investment dashboard as on-chain verification.
According to Pugh, BridgeTower’s legal department includes an in-house attorney, lawyers from Securitize, and an outside legal firm to work with the SEC and make sure the company’s products complied with all laws.
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