BitGo Bank & Trust, National Association has made bitcoin staking available to institutional clients by integrating with the Stacks protocol, letting participants earn bitcoin rewards while their assets remain in qualified custody on the Bitcoin network.
- Custody Structure: Staked bitcoin remains in BitGo Bank & Trust custody and is time-locked on Bitcoin without wrapping or bridging
- Reward Currency: Rewards are paid in bitcoin, derived from bitcoin spent on block production in the Stacks protocol
- Staking Mechanism: Uses Stacks PoX-5 protocol, requiring a paired STX position lock alongside bitcoin
- Availability: Currently limited to whitelisted institutional partners managed by Stacks Labs
The offering addresses a fundamental challenge for institutional bitcoin holders: earning yield without sacrificing custody arrangements or moving assets off their native chain. Traditional staking solutions typically require bitcoin to be wrapped, bridged to other networks, or moved to third-party custodians, each introducing counterparty and technical risks. BitGo‘s structure keeps bitcoin locked in a time-locked vault using standard Bitcoin script, maintaining the custody standards required by investment committees and fund mandates.
The integration carries particular implications for exchange-traded products and fund issuers, which must maintain separate accounting for principal and rewards. The Stacks integration allows rewards to be directed to a different address from the staking address, simplifying this separation from the moment rewards are paid. However, participation involves material risks: staked bitcoin remains inaccessible during the bonding period, and the required STX position is subject to market price fluctuation. The protocol itself contains no slashing mechanism, but participants face exposure to smart contract, protocol, and network risks.
BitGo operates as a digital asset infrastructure provider serving thousands of institutions, exchanges, and platforms since its 2013 founding. The company holds multiple regulated entities and provides custody, wallets, staking, trading, financing, and settlement services.
