BitGo Backs Ubyx as Settlement Agent for Digital Assets

Ubyx has secured a strategic investment from BitGo Ecosystem Holdings and appointed BitGo Bank & Trust, N.A. as a settlement agent, marking a new step in the buildout of regulated digital asset infrastructure for financial institutions.

Key Takeaways

• BitGo Ecosystem Holdings has taken a strategic stake in Ubyx, strengthening the company’s position in the market for regulated digital money infrastructure.
• BitGo Bank & Trust, N.A. has joined the Ubyx network as a settlement agent, where it will provide institutional grade custody and settlement services.
• The partnership is designed to support the movement of tokenized deposits and regulated stablecoins between issuers and receiving institutions in a shared framework.
• Both companies say the model helps solve the many to many problem in digital money, while still warning that stablecoins are not insured by FDIC or SIPC.

What Happened?

Ubyx Inc. announced that BitGo Ecosystem Holdings LLC, an affiliate of BitGo Holdings, Inc., has made a strategic investment in the company. At the same time, BitGo Bank & Trust, N.A., an OCC regulated trust bank, was appointed as a settlement agent on the Ubyx network.

The move gives Ubyx both fresh backing and an operating partner as it works to expand acceptance infrastructure for tokenized deposits and regulated stablecoins across banks and other financial institutions globally.

A new push for shared digital money infrastructure

The deal puts BitGo Bank & Trust at the center of Ubyx’s network as a core settlement partner. Under the arrangement, BitGo will provide custody and settlement capabilities that allow regulated digital assets to move securely between issuers and receiving institutions.

That is significant because Ubyx is not presenting itself as a closed ecosystem. Instead, it is pitching a shared infrastructure layer built to connect multiple issuers and multiple receivers without forcing institutions into proprietary rails. The company says this approach preserves par value integrity and supports the singleness of money across digital and traditional financial systems.

What BitGo and Ubyx said?

Frank Wang, Head of Fintech at BitGo said:

He added that Ubyx is addressing a major structural issue by enabling multiple issuers and multiple receivers to transact seamlessly while preserving par value integrity. According to Wang, BitGo’s role as both investor and settlement participant supports the kind of infrastructure needed for digital assets to scale globally within regulated frameworks.

Tony McLaughlin, CEO of Ubyx, said:

He also said the partnership shows that institutional infrastructure providers increasingly recognize the need for shared clearing and acceptance networks as regulated digital assets move into mainstream financial flows.

Why the partnership matters?

A central part of the Ubyx model is the separation of network coordination from custody and settlement execution. In simple terms, Ubyx manages the rules and connectivity layer, while firms like BitGo Bank & Trust handle safekeeping and transaction finality.

That structure is meant to satisfy the operational, regulatory, and governance standards expected by global banks and their supervisors. It also supports Ubyx’s broader argument that digital money infrastructure should be anchored in regulated, systemically credible institutions rather than closed platforms.

The companies also stressed that regulated structure does not remove all risk. They noted that stablecoins are not covered by FDIC or SIPC, and any loss of value or loss of the stablecoins themselves may not be reimbursed by insurance.

CoinLaw’s Takeaway

In my experience, the most important part of this announcement is not just the investment. It is the fact that BitGo is stepping in as an active settlement agent inside a network built for regulated digital money. I found that much more meaningful than a simple funding headline because it shows real market plumbing is starting to form behind tokenized deposits and stablecoins. If this model works, it could make digital asset settlement look far more practical for banks that want compliance, credibility, and scale.

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