TL;DR
BitGo is introducing Bitcoin staking through Stacks, allowing eligible institutional clients to earn rewards paid directly in BTC.
Bitcoin remains on its native blockchain under BitGo Bank & Trust custody, without requiring wrapping, bridging or transfers to another provider.
Participation requires an STX position worth 5% of the staked BTC and an approximately six-month bonding period, with a target annual yield of 3%.
BitGo has introduced Bitcoin staking through its integration with Stacks , opening a new way for institutional investors to generate BTC-denominated rewards while maintaining qualified custody of their holdings. The service, announced on November 3, allows eligible clients to stake Bitcoin directly from their existing BitGo accounts.
The integration addresses a longstanding limitation for institutional Bitcoin holders . Many yield-generating strategies require investors to transfer BTC to lending platforms, use wrapped assets or rely on third-party intermediaries. BitGo’s approach keeps the underlying Bitcoin on its native blockchain, potentially making staking more accessible to institutions with strict custody requirements.
Bitcoin staking from BitGo Bank & Trust, N.A. accounts is here.
Eligible qualified custody clients can now earn BTC rewards on bitcoin that stays in BitGo Bank & Trust custody through Bitcoin Staking with @Stacks .
Rewards are paid in BTC, funded by the BTC that Stacks miners… pic.twitter.com/OXJUrHRUEa
— BitGo (@BitGo) November 3, 2026
BitGo Integrates Bitcoin Staking Into Institutional Custody
Under the arrangement, BitGo Bank & Trust, National Association, acts as the qualified custodian throughout the staking process. Bitcoin remains secured through a timelocked vault on the Bitcoin network, while Stacks provides the infrastructure for generating rewards.
Participation requires investors to lock an STX position equivalent to 5% of their staked Bitcoin’s value. Both positions remain committed for approximately six months, after which the BTC principal becomes available again under the bond terms.
The rewards are denominated in Bitcoin rather than STX. Stacks founder Muneeb Ali highlighted a 3% annual target rate , although actual distributions depend on miner activity, fees and payment timing. This distinction matters for institutions evaluating potential income without assuming a fixed return.
The structure also introduces operational flexibility for investment products. BitGo supports separate addresses for staking rewards and principal holdings, helping ETF and ETP issuers maintain clearer accounting records and distinguish investment assets from generated income.
How Stacks Uses Bitcoin To Generate Staking Rewards
The integration relies on Stacks’ Proof of Transfer (PoX-5) mechanism, which connects Bitcoin transactions with activity on the Stacks blockchain.
Unlike Ethereum, Bitcoin does not have a native proof-of-stake system. Stacks approaches this differently by allowing miners to commit BTC to compete for block production on its network. These Bitcoin contributions help finance rewards distributed to eligible participants.
Recent figures provide additional context for the model. According to Alea Research’s November 3 report, the first Genesis Bond opened on September 10, pairing 230 BTC with approximately 3.57 million STX. During its first full payment cycle, miner contributions covered the bond’s scheduled payment 17.9 times, against a 2x coverage target under SIP-045.
