When you post your Bitcoin or Ethereum as collateral with a crypto-backed lender, you’re placing deep trust in that platform to keep your assets safe. That responsibility is not lost on us, which is why we don’t just say your collateral is secure. We can prove it.  

At APX Lending, borrower’s assets are custodied with BitGo Trust Company, one of the world’s most secure and regulated digital-custody providers. This means that even in the unlikely event that something happened to us, your crypto would remain fully segregated, insured, and accessible.  

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Now, let’s get into why we chose to partner with BitGo and what it means for you, the borrower.

What is cold wallet storage?

Cold wallet storage refers to offline custody of crypto assets, where private keys are held in environments disconnected from the internet. This physical isolation makes cold wallets nearly impervious to online threats like hacks or malware, risks that have cost investors billions.

How cold wallets differ from hot wallets

Hot wallets are connected to the internet for convenience and speed. Cold wallets, by contrast, store private keys offline, often secured through multi-signature authorization and hardware isolation. For institutional custody and long-term storage, cold wallets are considered the gold standard.

Why security matters in crypto custody

Custody failures are among the biggest risks in digital finance. From exchange hacks to lender insolvencies, the pattern is clear: when it comes to the custody of your digital assets, shortcuts can cost you. That’s why regulated custodians like BitGo matter. They introduce third-party oversight, insurance, and segregation of assets, so clients’ holdings remain protected even if a custodian or partner fails.

What is BitGo and why it stands out in cold wallet custody

Founded in 2013, BitGo is widely considered the institutional standard for digital asset custody. It’s a qualified custodian under U.S. law, regulated through the South Dakota Division of Banking and operating globally through BitGo Trust Company. Like us, it operates within a regulatory framework to deliver the safest possible service to its customers. And its track proves that’s exactly what it does.  

Since its inception, BitGo has had zero breaches.

Multi-signature technology

BitGo pioneered multi-signature wallet architecture, requiring multiple private keys to authorize transactions. This eliminates any single point of failure, protecting client assets even if one key or device is compromised.

Insurance coverage and compliance

BitGo Trust provides up to $250 million in insurance coverage through a syndicate of underwriters in the Lloyd’s of London market, protecting against theft, loss, and damage of digital assets held in custody.

It’s also SOC 2 Type 2 certified, meaning its internal controls meet the highest standards for data security and operational integrity.

Institutional-grade security standards

All collateral is stored in segregated cold-storage wallets. It’s never co-mingled or rehypothecated. That’s more than a best practice, by the way. It’s a regulatory requirement.

In Canada, APX Lending’s exemptive relief under the Canadian Securities Administrators (CSA) explicitly prohibits the co-mingling or reuse of client assets, another reason why we’ve partnered with BitGo.

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Benefits of using BitGo for asset protection

Safety for institutions

Institutions and high-net-worth investors choose BitGo for its layered security, insurance, and regulatory clarity. This means your collateral is not only secure—it’s verifiable and auditable through on-chain transparency. In other words, you can see it any time you need to.

Peace of mind for individual investors

For borrowers, BitGo’s model provides something that shouldn’t be rare in crypto but often is: peace of mind. You can view your on-chain wallet address in your APX dashboard, confirming that your collateral is exactly where it should be.

Comparing BitGo to other custody providers

BitGo consistently ranks among the top-tier custody providers in the industry. However, what sets it apart is its independence, transparency, and proven cold-storage model.

According to Ulam Labs’ comparison of top custodians, BitGo leads in institutional adoption due to its multi-signature technology, insurance, and global trust structure.

Final thoughts: Why custody is sacred at APX

At APX Lending, custody isn’t just another feature—it’s the foundation of everything we do.

By choosing BitGo as our exclusive custody partner, we ensure that every loan we issue is backed by verifiable, segregated, and insured collateral. Because in crypto lending, trust isn’t a given. It’s earned. And verifiable always.

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