BridgeTower Capital, a global innovator in blockchain market infrastructure, has announced a strategic collaboration with Securitize, a leader in digital asset securities, to launch its BridgeTower Global Platform targeting permissioned markets. As part of this initiative, the firm will also introduce a Staked Digital Asset Security (SDAS) operating on an Avalanche subnet.
Through this partnership, investors will gain streamlined access to a range of financial products via a user-friendly interface. After creating a Securitize iD account and completing identity verification compliant with U.S. regulations, users can explore diverse opportunities within the BridgeTower ecosystem and Securitize’s own offerings, including shares in private companies and institutional-grade funds.
All transactions will be facilitated through smart contracts, with regulated custodians utilizing Chainlink’s Proof of Reserve mechanism to ensure transparency in asset collateralization. This oracle solution provides real-time auditing of on-chain and off-chain reserves, enhancing trust across multi-chain operations. By leveraging Proof of Reserve, BridgeTower aims to unlock liquidity from top blockchain ecosystems under a compliant framework.
The permissioned market will include a variety of decentralized finance (DeFi) products such as customized staking opportunities, token swaps, and NFT development related to art, entertainment, and sports—all designed to meet institutional standards.
Sustainable Staking Infrastructure
BridgeTower operates over 5,000 of its own staking nodes powered entirely by renewable energy, significantly reducing its carbon footprint. As a leading proof-of-stake (PoS) infrastructure provider for Layer 1 blockchains and Web3 companies, BridgeTower has rapidly expanded its staking and DeFi operations through strategic partnerships and investments.
Cory Pugh, CEO of BridgeTower, stated, “We are bridging the value of innovative blockchain staking and DeFi products with institutional investors in a seamless manner. Our efforts are focused on introducing regulated processes and innovative solutions that enable institutions to confidently engage with evolving blockchain opportunities.”
Institutional-Grade DeFi Access
Jamie Finn, President and Co-Founder of Securitize, emphasized the growing institutional interest in DeFi: “Many institutional investors are eager to participate in decentralized finance but have been restricted due to a lack of secure, compliant platforms. With on-chain verification and our collaboration with Avalanche to develop permissioned subnets, we are creating a gateway to regulated DeFi.”
John Nahas, VP of Business Development at Ava Labs, added, “Avalanche has become a top choice for institutions looking to engage with DeFi innovations. We are excited to see BridgeTower and Securitize deepen their involvement within our ecosystem and build institutional-grade applications.”
Introduction of Staked Digital Asset Securities
A key innovation in this rollout is the Staked Digital Asset Security for AVAX. This product will allow investors to earn staking rewards and trade the asset within the permissioned market after a one-year holding period. The AVAX staked security token will represent AVAX locked in a smart contract, minting a staked utility token on the Avalanche blockchain operating within a subnet.
This structure creates a unified digital asset security tailored for institutional investors, incorporating built-in support for KYC, whitelisting, cap table management, and reporting. BridgeTower plans to introduce additional products later this year.
The staked AVAX security will also be available on the Securitize Markets Alternative Trading System (ATS), expanding access to a broad base of qualified investors. Currently, more than 400,000 investors participate in Securitize Markets. Eventually, BridgeTower anticipates that AVAX Staked Digital Asset Securities and other institutional staking products will be available on additional Layer 1 networks, Web3 platforms, and other exchanges.
“We believe this product is unique in the securities space, offering a regulated, global vehicle for institutional participation in the expanding proof-of-stake market,” Pugh noted. “We are thrilled to collaborate with industry leaders like Securitize and Avalanche, each bringing deep expertise to this initiative.”
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Frequently Asked Questions
What is a Staked Digital Asset Security (SDAS)?
A Staked Digital Asset Security is a regulated financial instrument that represents staked cryptocurrencies. It allows investors to earn staking rewards while holding a security that can be traded on permissioned markets after specific conditions, such as a holding period, are met.
How does Chainlink’s Proof of Reserve enhance security?
Chainlink’s Proof of Reserve provides real-time, cryptographically verified data about collateral backing digital assets. This increases transparency and reduces counterparty risk by ensuring that reserves match the assets in circulation.
Who can invest in these products?
These products are designed for institutional and accredited investors who have undergone compliance checks such as KYC and AML. Access is facilitated through platforms like Securitize Markets ATS.
What blockchains are supported?
Currently, the focus is on Avalanche-based assets and subnets. However, BridgeTower plans to expand support to other major Layer 1 blockchains and Web3 ecosystems in the future.
Why use a permissioned market?
Permissioned markets provide a controlled environment that complies with regulatory standards, making them suitable for institutional participants who require security, compliance, and verified counterparties.
Are these products environmentally sustainable?
Yes. BridgeTower uses 100% renewable energy for its staking nodes, aligning with growing demand for sustainable blockchain infrastructure.