Originally published on: December 10, 2024
BitGo, a leading cryptocurrency custodian, is revolutionizing yield opportunities for institutions with the integration of institutional-grade Bitcoin staking via Core DAO’s layer-1 blockchain platform.
Pioneering the way for institutional access to dual staking with Core, BitGo is empowering clients to earn scalable Bitcoin yields in a secure and efficient manner, as announced on Dec. 9.
Core’s innovative staking solutions provide Bitcoin holders with the ability to maintain full custody of their assets, eliminating counterparty risk and ensuring peace of mind.
BitGo CEO Mike Belshe expressed the company’s dedication to broadening opportunities for institutional clients to generate yield from their Bitcoin holdings through the integration with Core.
Cryptocurrency staking, a process that allows holders to earn passive rewards by locking their assets, is typically associated with proof-of-stake (PoS) blockchains like Ethereum. However, with Bitcoin operating on a proof-of-work (PoW) consensus mechanism, staking has been a challenge. Despite this, various methods, including custodial lending, DeFi applications, layer-2 staking, and restaking, have emerged to facilitate BTC staking indirectly.
Core’s non-custodial Bitcoin staking model offers stakers the opportunity to secure their BTC on the Bitcoin blockchain to contribute security to the Core blockchain and earn CORE tokens. With the introduction of dual staking, users can maximize their Bitcoin staking rewards by also staking CORE tokens, providing a unique and attractive opportunity in the Bitcoin ecosystem.
By leveraging Core’s dual staking model, BitGo is enabling institutional clients to access additional Bitcoin staking rewards securely and efficiently. Through time-locking client Bitcoin and staking CORE tokens directly from BitGo’s trusted custody platform, institutions can unlock scalable, tiered yields without exposure to slashing, credit, counterparty, or smart contract risks on their principal assets.
This development comes on the heels of Core DAO surpassing $1 billion in total value locked on Dec. 5, with assets primarily consisting of Bitcoin-based tokens like solvBTC.m, oBTC, solvBTC.b, uBTC, solvBTC.CORE, and aBTC. The significant growth in TVL has been driven by retail Bitcoin users actively participating in diverse DeFi protocols on Core, showcasing the platform’s attractiveness and potential for institutional clients.
As the cryptocurrency landscape continues to evolve, platforms like BitGo and Core DAO are at the forefront of unlocking new possibilities for institutions to maximize their Bitcoin holdings while ensuring security, transparency, and efficiency in their staking endeavors.
