Crypto custody provider BitGo teams with Core DAO to introduce a new Bitcoin yield-focused initiative for institutional clients that uses its dual staking model and offers scalable returns.
On the 9th of December, the collaboration announced the integration of Core’s blockchain platform with BitGo’s custodial services, one of which serving as a cornerstone for institutional Bitcoin staking solutions. The dual staking from the Core DAO allows Bitcoin holders to be able to lock BTC on the blockchain in exchange for Core (CORE) tokens while securing the Core network.
Bitcoin Staking Combines With CORE Rewards
So, users can get more yield by combining Bitcoin staking with CORE token staking. Importantly, at Core, the staking method is securely locked up in Core’s custody, with no counterparty risk. Mike Belshe, CEO of BitGo, said of the new integration:
“BitGo’s integration with Core demonstrates our commitment to drive the highest level of security to help institutions generate yield from their Bitcoin holdings.” This is an artifact of staking, which is otherwise something typically found on PoS blockchains like Ethereum where users earn passive rewards for locking their tokens.
Bitcoin itself runs on the proof of work (PoW) protocol, and does not have native staking capabilities, which is why we have seen Bitcoin layer-2 staking emerge, or custodial lending, or restaking. In addition, non-custodial BTC staking done through Core locks BTC directly on blockchain of the underlying blockchain, and is further boosted by the platform’s dual staking model.
Rich Rines, a founding contributor at Core DAO, said this approach offers more appealing yields than a normal DeFi proposition. By allowing this feature, Bit Go is reinforcing its reputation as an institutional BTC solution’s custodian. The company however advises on risk mitigation notably for client assets on its custodial platform and no slashing, credit, counterparty, smart contract risks intake.
This is a reflection of skyrocketing institutional demand for novel methods of earning returns on BTC holdings while maintaining security.
