BitGo, the world's largest processor of on-chain Bitcoin transactions, has launched a new service that offers institutional clients a means to earn yield from their holdings in two leading cryptocurrencies, Bitcoin and Ethereum. With the launch of this new product, BitGo joins a growing list of blockchain-focused companies aiming to attract institutional investors into the crypto market.
The new service, called BitGo Prime, will offer clients the opportunity to earn yield on their holdings from both Bitcoin and Ethereum. This is achieved through lending and borrowing activities with vetted counterparties, which include institutional and retail investors. BitGo Prime will also provide clients with a single integrated solution for trading, lending, and securing digital assets.
BitGo's new service aims to provide a secure and regulated platform for institutional investors to earn yield on their crypto assets. This move comes at a time when traditional finance is experiencing low returns due to the ongoing global economic crisis. As such, crypto yield earning platforms are becoming increasingly popular as they offer potentially higher returns compared to traditional investment vehicles.
In addition to providing yield earning opportunities, BitGo is also offering Dual Staking feature for its BitGo Trust clients. Dual Staking allows clients to earn additional yield by participating in the proof-of-stake consensus mechanism of certain blockchain networks. This feature aims to maximize the yield earning potential for institutional investors in the digital asset space.
BitGo's move to offer yield earning and staking services is part of a broader trend within the cryptocurrency industry. Many blockchain companies are now offering similar services to attract institutional investors who are looking for new ways to earn returns in the current economic climate. As the cryptocurrency industry continues to mature, it is expected that these types of services will become more common, providing institutional investors with a wider range of opportunities to earn yield from their digital asset holdings.