Starting October 25th, BitGo will reportedly introduce a Bitcoin rewards earning feature via the Stacks token, generally referred to as STX. 

Specifically, through a process generally referred to as Stacking, STX token holders will reportedly have the ability to earn BTC rewards in their wallets, in a direct manner. 

Bearing a few differences compared to other yield-earning services, BTC rewards generated via Stacking are not dependent on a lending auction, which means it is not necessary for STX token holders to lend their funds. 

Instead, Stacks reportedly revealed that the yield is derived straight from its staking mechanism, which is linked to the Bitcoin blockchain.

STX token holders will additionally have the freedom to tap into BitGo’s insurance, asset protection and portfolio management solutions. BitGo recently widened the scope of its crypto-insurance initiative by $600 million, helping the overall value of assets covered to exceed the $700 million benchmark. 

Stacks reportedly functions an open-source network for designing smart-contract and DeFi bridges to Bitcoin. The platform made its mainnet available in January 2021, and has managed to form a few top-tier alliances, including Foundry Digital and Blockdaemon, among others.

BitGo co-founder and current Head – Mike Belshe – reportedly shared that his firm completed the Stacks integration to cater to the needs from financial institutions for a secure access point to the DeFi market.

“By onboarding support for Stacks and STX, we are giving our clients what they want […] without the need for expensive infrastructure investments,” 

The crypto market has reportedly witnessed a major surge of institutional capital pouring in in 2021, a trend that is expected to keep on going since Bitcoin (BTC) and Ether (ETH) are looking to exceed record-breaking highs.