Aptos SVP Ash Pampati explains why quantum readiness can't wait (3:22)
Crypto custody companies usually play the role of the neutral middleman.
They hold digital assets for banks, funds and exchanges, and they rarely bet their own money on the networks they support.
BitGo, one of the largest of them, is now putting its own balance sheet behind Aptos.
BitGo said in a press release that it has taken a “strategic position” in APT, the native token of the Aptos blockchain.
Aptos is a layer-1 network, a base blockchain that apps are built on, originally incubated at Meta. APT is used to pay transaction fees and to help secure the network.
The company didn’t disclose the size of the position, what it paid, or when it bought the tokens.
Related: $13 trillion brokerage giant offers cheapest ways to trade crypto
Building on years of Aptos support
BitGo is a New York Stock Exchange-listed company that stores digital assets for institutions.
Its businesses include BitGo Bank & Trust, which the company describes as the first federally chartered digital asset trust bank owned by a publicly traded company.
The firm already offers Aptos services to its institutional clients. Eligible clients can store APT with BitGo and stake it, meaning they lock up tokens to help run the network in exchange for rewards.
BitGo also holds assets created under the Aptos Digital Asset Standard, a framework for things like tokenized loans and real-world assets.
Abel Seow, BitGo’s managing director and head of APAC sales, said the move continues that work.
“Our work with Aptos already spans custody, staking, and connectivity to onchain markets,” he said.
More on Aptos on TheStreet Roundtable:
Aptos joins Solana and Ethereum in Bullish’s tokenized stock plan
Aptos exec: Wall Street still needs treasury stocks
Aptos Labs and five blockchain groups ask SEC for clearer crypto rules
A direct line to Decibel
That last part refers to Decibel, a trading platform built on Aptos and incubated by Aptos Labs, the network’s core developer.
Institutions that use BitGo’s self-custody wallets can connect to Decibel through the same approval steps they already use for other transactions.
For Aptos, a custodian holding its token says something about confidence in the network’s direction.
Solomon Tesfaye, chief business officer at Aptos Labs, said BitGo’s stake “underscores its commitment to Aptos.”
Michael Ching, head of treasury and operations at the Aptos Foundation, the nonprofit that supports the network’s growth, described it in terms of what institutions look for.
“Institutional adoption tends to follow solid infrastructure,” he said.
The real test is whether BitGo’s clients start doing more with APT, through staking, trading on Decibel, or both.
The Roundtable 100
If you follow our market coverage, don’t miss the Roundtable 100. Updated every Friday, it’s a power ranking of the 100 most investable tech stocks, including digital assets. Check out the latest RTB 100 rankings at roundtable100.com.
Related: Analyst warns Bitcoin should be down 40% after two weeks of chaos
