Bitcoin (BTC) News: Seeking Yield
Institutions are increasingly seeking yield and DeFi capabilities for their Bitcoin holdings through new infrastructure projects.Summary
Institutional interest in Bitcoin is evolving beyond passive storage, with asset managers and corporate treasuries now viewing BTC as an asset that must generate yield. Projects like Rootstock and Babylon are building infrastructure to bridge Bitcoin with yield-bearing protocols and DeFi-style activities, allowing institutions to earn Bitcoin-denominated returns without moving assets off-chain or using wrapped/bridged solutions. This shift aims to offset custody costs (custody drag) by offering secure, native yield opportunities, such as BTC-backed stablecoins and credit structures, even if current annual returns (1-2%) are thin compared to ecosystems like Ethereum. While the technology for Bitcoin restaking exists, the psychological hurdle remains for investors to justify locking up assets for modest returns, though the trend points toward Bitcoin becoming a more productive asset while maintaining its core self-custody principle.
(Source：CoinDesk)