Crypto guardian BitGo enables institutional Bitcoin production with core

Cryptocurrency custodial firm BitGo is expanding product possibilities by integrating institutional-grade bitcoin staking with its Layer-1 blockchain platform Core DAO.

According to a joint announcement on December 9, BitGo will be one of the first custodians to gain institutional access to Core Double Stake, allowing its customers to access scalable Bitcoin (BTC) production.

Core staking solutions are designed to allow Bitcoin owners to hold their assets in full, avoiding counterparty risk.

“Bitgo's integration with Core underscores our commitment to expanding opportunities for institutional clients to securely generate revenue from their bitcoin holdings,” said Mike Belshe, CEO of Bitgo.

Bitcoin staking versus double staking

Cryptocurrency staking is a crypto process that allows crypto holders to earn unlimited rewards by locking their coins in a wallet and holding their assets.

Although crypto staking is natively supported on Proof-of-Stake (PoS) which operates a Proof-of-Work (PoW) consensus mechanism such as Ethereum, Bitcoin, it cannot be registered domestically. There are still a few methods that allow users to pay BTC indirectly.

According to HashKey, there are at least four BTC storage methods, including custodial lending, bundling BTC and applying decentralized finance (DeFi) lending, Bitcoin Layer-2 staking, and repo.

Bitcoin rebalancing is when a BTC holder shares their Bitcoin through an intermediary protocol, which reconnects it to external client chains in order to profit from the client chain's activity.

Core's non-custodial Bitcoin staking is a form of BTC staking where stakeholders lock up their BTC in the Bitcoin blockchain to secure CORE tokens for the Core blockchain. Core's dual staking gives a higher BTC stake value to those who hold CORE tokens.

Dual staking on BitGo with core

“With double-stacking, we've taken it to the next level. ” Core DAO founding contributor Rich Rines told Cointelegraph.

Related: Staking May Be Coming Soon to US Ether ETFs: Bernstein

With Core's dual staking model, Bitgo – which has been supporting different types of BTC staking – now allows its institutional clients to earn additional Bitcoin stake rewards.

“By time-locking client bitcoins and depositing CORE tokens directly from BitGo's qualified escrow platform, institutions can unlock a scalable, standardized product without incurring any leverage, credit, counterparty or smart contract risks to their core assets,” the announcement said.

Additional reporting by Ezra Regera.

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