BitGo used its second-quarter earnings call to unveil goStocks, a product demonstration for tokenized equity that could reshape how investors use stock holdings as collateral without selling them.
The company reported Q2 revenue of $4.3 billion on Aug. 12, up 79.6% year-over-year and 14.7% sequentially, while narrowing its net loss to $19.0 million from $60.7 million in the first quarter. CFO Ed Reginelli will step down during the coming quarter but remain to manage the transition.
Digital Asset Sales, BitGo's core revenue line, brought in $4.2 billion, up 84.3% year-over-year. However, the unit's margin compressed to 17 basis points from 32 basis points in Q1 and 19 basis points a year earlier, which BitGo attributed to thinner spreads on spot trading and a lower mix of derivatives activity. Staking revenue rose 30.9% sequentially to $64.7 million even as its take rate fell to 6.0% from 16.1%. Stablecoin-as-a-Service revenue climbed 148% year-over-year to $38.8 million, with its take rate rising to 8.0% from 2.6%.
Management highlighted $15 million in annualized cost savings and a newly authorized $50 million share buyback. BitGo ended the quarter with $159.0 million in cash, no corporate debt, and 2,523 Bitcoin worth roughly $147.7 million on its treasury balance sheet.
During the demo, CEO Mike Belshe purchased SpaceX shares, which the OCC-regulated BitGo Bank & Trust bought through registered broker Alpaca and tokenized one-for-one into goSPCX tokens. Belshe then pledged those tokens as collateral through BitGo Prime to draw a loan without selling the underlying shares. BitGo says the tokens represent direct ownership of the shares rather than a synthetic claim against an issuer, sit in accounts segregated from the bank's own assets, and are designed to be excluded from the bankruptcy estate if BitGo Bank & Trust becomes insolvent.
Although goStocks is not yet available to clients, the demo aligns with BitGo's disclosures that it supported DTCC's tokenized-securities demonstration after quarter-end and continues work with Canton Network and Figure. The announcement also follows Ondo tokenizing BitGo's own stock hours after its NYSE debut, reinforcing BitGo's ambition to become the custody layer underneath tokenized markets regardless of which platform ultimately wins institutional volume.
The broader crypto market is showing mixed signals, and no significant price movement has emerged for tokenized equity. Still, BitGo's demonstration could increase institutional interest in blockchain-based equity ownership and liquidity.
