BitGo will provide custodial and trading services for digital asset fund StableX Technologies as it plans to acquire up to $100 million in crypto tokens linked to the stablecoin sector.
According to Tuesday’s announcement, BitGo Trust Company will serve as the custodian of StableX’s digital assets, while BitGo’s trading platforms will help execute the company’s planned purchases through its liquidity desk.
StableX (SBLX) is a public company focused on stablecoin infrastructure and related technologies. Shares of the Nasdaq company rose as much as 9% in afternoon trading after the news, and were up 1.6% before closing.
Chen Fang, chief revenue officer at BitGo, told Cointelgraph that “the partnership underscores BitGo’s growing role as an infrastructure provider for the new wave of publicly traded companies developing digital asset treasury strategies.” He added:
“The StableX agreement is significant because it is focused on bitcoin’s treasury strategies. It points to the demand for institutional storage infrastructure around tokens in the stablecoin ecosystem.”
StableX has already started building its digital asset fund, having previously announced the purchase of tokens including FLUID and LINK’s Chainlink (LINK) in October.
BitGo, a digital asset infrastructure company founded in 2013, provides storage, trading and other services for institutional crypto clients. The company went public on the New York Stock Exchange in January, pricing its shares at $18 in its initial public offering.
Shares rose nearly 25% on their first day of trading, before reversing course and later falling below their IPO price. NYSE-traded shares closed up more than 11%.
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The investment product is focused on stablecoin infrastructure
According to recent data from DefiLlama, interest in the stablecoin sector has increased as the total stablecoin market capitalization has reached more than $314 billion. Although dedicated investment products remain limited, some investors are focusing on the infrastructure that supports these tokens.
In September, Bitwise filed with the US Securities and Exchange Commission to launch the Stablecoin & Tokenization ETF, which is designed to track companies and digital assets related to the stablecoin and tokenization sectors.
The proposed exchange-traded fund includes an index of companies involved in fixed income, infrastructure, payments and exchanges, along with crypto assets such as Bitcoin (BTC) and Ether (ETH).
In January, MarketVector Indexes also launched indices focused on stablecoin and real-world asset tokenization infrastructure, supporting two exchange-traded funds from Amplify ETFs: Amplify Tokenization Technology ETF (TKNQ) and Amplify Stablecoin Technology ETF (STBQ).
Several stablecoin issuers are also public companies. Circle will launch the USDC stablecoin, the second largest dollar-denominated token in circulation, while PayPal will launch the PayPal USD (PYUSD) stablecoin in 2023 to support payments and settlements based on the blockchain.
Western Union, one of the major money transfer providers, recently announced that the planned stablecoin settlement system will work on Solana and will include the US dollar payment token (USDPT), which the company expects to launch in the first half of 2026.
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