BitGo offers institutions Bitcoin yield via Stacks

BitGo, the custodian, has started offering clients a way to earn Bitcoin yield via Stacks (STX), the native token of Blockstack.

JUST IN: @BitGo integrates $STX 🔥

«BitGo Co-founder and CEO @mikebelshe said his company integrated Stacks because financial institutions have been looking for a secure access point to the DeFi market.» https://t.co/RvChYzViKv

— stacks.btc (@Stacks) October 25, 2021

Stacks is an open-source network for building smart contracts and DeFi bridges to Bitcoin. Initially the protocol used the hash power of the Bitcoin network in combination with a Proof-of-Burn mechanism.

Later, the team developed a new consensus mechanism (Proof-of-Transfer, PoX). With the January 2021 launch of Stacks 2.0, stakers began earning BTC income, while miners used digital gold to mine STX.

According to co-founder Muneeb Ali of Stacks, PoX can incentivize participation in the network by offering Bitcoin rewards, something that was not possible before the protocol.

STX holders will also gain access to BitGo’s insurance, asset protection and portfolio management solutions. According to BitGo’s CEO Mike Belshe, the company took this step due to interest from financial institutions in the DeFi market.

Blockstack was founded in 2013. The project, also known for its work on a decentralized Internet, has previously attracted $50 million in funding from notable blockchain figures and venture firms, including the Winklevoss brothers, Union Square Ventures, Digital Currency Group and Version One.

In 2019, Blockstack became the first company to receive SEC approval to conduct a token sale under Regulation A+.

In September 2019, the blockchain wallet provider Blockchain announced the start of STX support in its lineup of products for retail and institutional investors. In the same month Blockstack raised $23 million in the first regulated crowdsale in the United States.

In 2020 the company said it had reached one million registered users and gained access to $6.8 million in funding.

In August 2020 Blockstack provided the Stacks Foundation 100 million tokens of STX worth a total of $27 million to boost decentralization.

As noted in October 2021, BitGo’s regional director for EMEA Darren Jordan, noted demand from corporations for regular Bitcoin purchases.

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