BitGo to custody digital assets for StableX’s $100M stablecoin plan

The collaboration will provide custody and trading infrastructure as StableX builds a $100 million digital asset treasury focused on stablecoins.

BitGo will provide custody and trading services for StableX Technologies’ digital asset treasury as it plans to acquire up to $100 million in crypto tokens tied to the stablecoin sector.

According to Tuesday’s announcement, BitGo Bank & Trust, N.A. will serve as the custodian for StableX’s digital asset holdings, while BitGo’s trading platforms will help execute the company’s planned acquisitions through its over-the-counter liquidity desk.

StableX (SBLX) is a publicly traded company focused on stablecoin infrastructure and related technologies. Shares of the -listed company gained as much as 9% in afternoon trading following the news, before closing up 1.6%.

Chen Fang, chief revenue officer at BitGo, told Cointelgraph that the “partnership underscores BitGo's expanding role as the go-to infrastructure provider for a new wave of publicly traded companies building digital asset treasury strategies.” He added:

“The StableX deal is notable because it goes beyond Bitcoin-centric treasury strategies. It signals demand for institutional custody infrastructure around stablecoin ecosystem tokens.”

StableX has already begun building its digital asset treasury, previously announcing purchases of tokens including FLUID and Chainlink’s LINK LINK $8.97 in October.

BitGo, a digital asset infrastructure company founded in 2013, provides custody, 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.

The stock rose about 25% on its first day of trading before reversing course and later falling below its IPO price. The NYSE-traded shares closed up more than 11%.