Core Foundation, the creator of a yield-bearing Bitcoin token, has formed a strategic partnership with leading institutional players in the crypto space. The partnership includes institutional lending protocol Maple Finance and custodians BitGo, Copper, and Hex Trust, marking a significant move into the Bitcoin (BTC) staking market.
Core’s innovative token, IstBTC, enables institutional participants to earn yield on their Bitcoin holdings while remaining securely within trusted custodial systems. This eliminates the need to take on the risks and operational complexities associated with smart contracts. A new liquid staking token, which Maple plans to launch in the coming months, will allow staked BTC to be used by trading firms and asset managers as collateral for borrowing in decentralized finance (DeFi) or with other trading counterparties.
Expanding Bitcoin Staking and Yield Opportunities
The concept of earning yield on Bitcoin and unlocking new liquidity for the DeFi ecosystem has become increasingly popular. Several protocols, including Babylon, have already entered the market. According to Sid Powell, CEO of Maple Finance, Core’s dual-staking mechanism will open up yield opportunities to a large, untapped group of Bitcoin holders.
“Bitcoin’s security budget will face challenges in the coming years as miners receive less block reward revenue,” Powell explained in an interview. “Staking solutions like Core can help bolster Bitcoin’s network security by providing alternative revenue streams for miners. Holders of lstBTC will earn yield on their Bitcoin while it’s held in custody, representing a vast market opportunity.”
Core’s New BTC Staking Product and Future Prospects
This month, Maple launched an existing BTC staking product based on Core’s platform. The product requires BTC to be locked up for 90 days, with a target yield of over 5% APY. Additionally, the new liquid staking token, lstBTC, will offer immediate redemption, improving liquidity, though Maple expects a slightly lower annual percentage return (APR) as a result.
Powell noted that Core is positioning itself advantageously in the competitive staking market. The company is set to be the first to market with a yield-bearing liquid staking token for Bitcoin, a move that could significantly impact the Bitcoin ecosystem and DeFi liquidity in the coming years.
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