BitGo, institutional liquidity provider, Custody and security of digital assets, Today announced support for Stacks, the network that created the technology needed to bring applications and smart contracts to the network. Bitcoin network.
In order to meet the needs of institutions for holding bitcoins, BitGo will now provide institutional token holders with the opportunity to obtain BTC rewards Stacks’ native token (STX) In a process called stacking. This in turn enables large financial institutions and BitGo’s vast customer network to immediately access Bitcoin DeFi.
Compared with other popular income income solutions on the market, Stacking’s Bitcoin income is not generated through lending, which means that token holders do not need to lend out funds in order to obtain rewards. Instead, the revenue comes directly from Stacks’ consensus mechanism, which links the Stacks blockchain with the Bitcoin blockchain.
In the regulatory environment that has just seen Coinbase shut down its Lend function, obtaining benefits of this nature may be very attractive to institutions and everyday users who want to avoid potential regulatory uncertainty or penalties. It also eliminates one aspect of the risks normally associated with loan-based yields, because no borrower will default.
“BitGo’s support for Stacking and Stacks is another example of how the Stacks ecosystem and its supporters are leading the Bitcoin DeFi movement. Institutions can now understand what has been enjoyed by thousands of Stackers since the launch of Stacks 2.0, with Bitcoin The paid income is paid with the industry-leading APY, without the typical mortgage option risk.”
– Mitchell Cuevas, Head of Growth, Stacks Foundation
Stacking and Staking have some things in common, but there are also some key differences. First, in the staking plan, the proceeds are usually paid in the same asset that is staking and then often traded out. In Stacking, the proceeds are paid directly to “Stacker” in BTC.
Staking and Stacking
By adding Stacks (STX) to BitGo, customers will have access to BitGo’s insurance, asset protection, portfolio management, and tax reporting tools. The integration of BitGo and Stacks also allows users to choose to store Stacks tokens in custody, digital wallets, multi-signature wallets, or earn BTC income through Stacking.
“Financial institutions have always hoped to enter the DeFi field in a safe and reliable way. By adding support for Stacks and STX, we provide customers with what they want-Bitcoin and paradigm conversions like STX encrypted assets, and No need to make expensive infrastructure investments.”
– Mike Belshe, CEO and co-founder of BitGo