Core Foundation Enters BTC Staking with Partners

Core Foundation, the creator of a yield-bearing bitcoin token, has partnered with institutional lending protocol Maple Finance and custody firms BitGo, Copper, and Hex Trust to enter the BTC staking sector.

Core’s IstBTC token allows institutional participants to earn yield on bitcoin holdings while safely using trusted custodial partners, avoiding the risks and operational burdens of smart contracts. A liquid staking token, to be launched in the coming months by Maple, will enable staked BTC to be utilized by trading firms and asset managers as collateral for borrowing in DeFi or with trading counterparties.

The opportunity to earn yield on bitcoin and introduce new liquidity into the DeFi ecosystem has garnered significant attention, with protocols like Babylon also entering the market. Core’s dual-staking mechanism is set to empower a large, untapped segment of BTC holders to gain yield on their assets, noted Maple CEO Sid Powell.

According to Powell, “Bitcoin’s security budget will face problems in a few years as miners receive less block rewards revenue. Staking solutions like CORE can help strengthen Bitcoin network security by providing alternative revenue sources to miners. Holders of lstBTC will benefit from earning yield on their BTC while in custody, representing a vast total addressable market.”

Maple recently launched an existing BTC staking product on CORE this month. This product involves locking up BTC for 90 days with a yield target of over 5% APY. The liquid staking token (lstBTC) will be instantly redeemable, enhancing liquidity, which may lead to a slightly lower APR range.

Powell mentioned Core is well-positioned competitively, aiming to be the first to market with a yield-bearing BTC liquid staking token. “There are few BTC yield options available. Upon reviewing the landscape, most are just points and not yet liquid or yielding BTC.”