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

BridgeTower Capital, which operates over 8,000 validation nodes powered by 100% renewable energy, is becoming increasingly entrenched in the crypto ecosystem with an emphasis on regulatory compliance.

Wednesdays, you know, Bridge.Tower 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.

Thanks to the regulated market of Bridgetower, institutional investors can complete their process of knowing their customers, have a delegated portfolio, inscribed on a white list, and place their ether (eth) directly in the lido system. The integration of bridgetower into the lido ecosystem is fully automated and enables investors to benefit from the lido staking infrastructure in a way that complies with regulatory standards.

The blockchain technology company also offers a security token, a new product which enables buyers to receive rewards associated with the avalanche's staked avax token. By collaborating with securitize, a regulatory platform for issuing securities of digital assets, bridgetower offers a security token that represents avax staked and headquartered in a regulated exchange.

When a corporate investor buys a security token, bridgetower delegates a portfolio that receives avalanche staking rewards to the corporate investor. "This is one way to get full access to a security-tagged token," said Cory Pugh, Bridgetower Capital's CEO, in an interview with Coindesk.

According to BridgeThe Tower news release entitled "Rewards will be custodied on behalf of investors and, upon completion of the lockup period, will be distributed to an investor wallet created by Circle". Moreover, BridgeTower will use Chainlink's Proof of Reserve service to monitor and check an investor's portfolio balance and transmit this information to its Investment Dashboard as online evidence.

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.

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