Core Foundation Enters the BTC Staking Sector
The Core Foundation, known for its innovative approach to cryptocurrency, has announced a strategic partnership with institutional lending protocol Maple Finance, alongside renowned custody firms such as BitGo, Copper, and Hex Trust. This collaboration aims to make significant strides in the Bitcoin (BTC) staking landscape.
At the heart of this initiative is Core’s IstBTC token, which allows institutional investors to earn yield on their Bitcoin holdings while remaining securely within the custody of trusted partners. This approach eliminates the typical risks and operational challenges associated with engaging with smart contracts.
In the coming months, Maple Finance is set to issue a liquid staking token that will enable staked BTC to be utilized by trading firms and asset managers as collateral for borrowing in the decentralized finance (DeFi) space or with trading counterparties. This development is expected to pave the way for a new era of liquidity within the DeFi ecosystem.
The conversation around earning yield on Bitcoin has gained momentum, with protocols like Babylon emerging in this burgeoning market. According to Maple CEO Sid Powell, the dual-staking mechanism introduced by Core will empower a vast, untapped segment of BTC holders to generate yield on their assets.
“Bitcoin’s security budget is likely to face challenges in the coming years as miners will receive diminishing rewards from block rewards,” Powell noted in a recent interview. “Staking solutions, such as those offered by Core, can bolster Bitcoin’s network security by providing miners with alternative revenue streams. Holders of IstBTC will not only benefit from yield generation but will also tap into an immense total addressable market.”
This month, Maple launched an existing BTC staking product on the Core platform, which requires participants to lock up their BTC for a duration of 90 days, targeting a yield of over 5% APY. The forthcoming liquid staking token, known as lstBTC, will be instantly redeemable, thereby enhancing liquidity. Consequently, Maple anticipates a slightly lower annual percentage rate (APR) range for this product.
Powell expressed confidence in Core’s strategic positioning, highlighting that the framework is in place for them to be pioneers in the market with a yield-bearing BTC liquid staking token. “Currently, there are limited options for BTC yield. A closer look reveals that most existing solutions lack liquidity or fail to deliver yield in BTC,” he stated.
