Core Foundation, the eminent creator of a yield-bearing bitcoin token, has recently announced its partnership with Maple Finance, an institutional lending protocol, and custody firms BitGo, Copper, and Hex Trust. This partnership marks Core’s entry into the rapidly growing Bitcoin (BTC) staking sector.
Core’s innovative IstBTC token has been designed to allow institutional participants to earn yield on their bitcoin holdings, while remaining within the trusted custodial partners’ safe confines. This eliminates the need for them to take on the risks or operational burdens associated with dealing with smart contracts. A liquid staking token, set to be issued by Maple in the coming months, will enable staked BTC to be utilized by trading firms and asset managers as collateral for borrowing in Decentralized Finance (DeFi) or with trading counterparties.
The concept of earning yield on bitcoin and potentially introducing a fresh wave of liquidity into the DeFi ecosystem has garnered significant attention. Protocols such as Babylon have already made their foray into the market. According to Sid Powell, CEO of Maple, a vast group of BTC holders will be able to earn yield on their BTC owing to Core’s dual-staking mechanism.
Powell, in a recent interview, highlighted that, “Bitcoin’s security budget will face challenges in the coming years as miners receive less block rewards revenue. Staking solutions like CORE can help fortify Bitcoin network security by providing alternative revenue sources to miners. Holders of lstBTC will benefit from this by earning yield on their BTC while in custody, which represents an immense total addressable market.”
Earlier this month, Maple launched a BTC staking product on CORE. This product necessitates locking up BTC for a period of 90 days and targets a yield of 5%-plus Annual Percentage Yield (APY). The upcoming liquid staking token BTC (lstBTC) will be instantly redeemable, thus offering better liquidity. Consequently, Maple anticipates a somewhat lower APR range for the lstBTC.
Powell also asserted that Core is strategically positioning itself in a highly competitive market, being ready to be the first to introduce a yield-bearing BTC liquid staking token.
“There are few BTC yield options out there. If you look across the stack, most of them are just points and they’re not liquid yet or delivering yield in BTC. However, with the upcoming launch of lstBTC, we’re looking to change that,” Powell concluded.
This partnership symbolizes an exciting development in the BTC staking sector, promising to provide BTC holders with new avenues to maximize yield, while reinforcing the security of the Bitcoin network. It showcases the potential of collaboration in enhancing and innovating within the cryptocurrency space.
