To provide the Android hardware-backed keystore [1]
If it's present, this is used by apps like 'Google Authenticator' and 'Symantec Vip access' to store credentials in such a way that they can't be copied off the device or backed up.
When this technology works perfectly, the idea is if you have a short passcode and someone steals your phone, they can't extract the encrypted data and brute-force the passcode without an electron microscope and a team of engineers.
Unfortunately, it can also be used for user-hostile applications like providing DRM and preventing backups and rooting.
I'm reasonably certain about Symantec Vip Access, because I've decompiled it (download apk 3.1.3 -> dex2jar -> jd-gui). Class named ṝ method named ˎ make calls that look like calls to the android key store. Hard to be 100% certain because the code is obfuscated though.
I was wrong about Google Authenticator. I assumed it was the same as Symantec because of all the people online complaining about being unable to back up their credentials.
Apologies, I stand corrected. All I've ever heard is it being explained as Apple's implementation of TrustZone, which conceivably could be modded so far as to be put on a separate coprocessor.