Blockchain software firm BitGo announced on Thursday it has launched BitGo Staking, which allows clients whose assets are with qualified custodian BitGo Trust to now generate passive income while their assets remain in secure, insured cold storage.
According to BitGo, BitGo Staking launches with Dash and Algorand and will offer support for additional coins planned for later this year. The rate of return will vary by coin, running from 7% to up to 13% for Algorand.
Along with the launch of BitGo Staking, BitGo also announced it has acquired Hedge, a scaleable, programmatic deployment of staking infrastructure company. BitGo reported:
“This acquisition forms the foundation of BitGo Staking through the integration of Hedge’s automated secure deployments, scalable and redundant processes, and the use of hardware security modules (HSMs) and secure cryptographic enclaves. Clients will have the option of choosing to delegate staking to BitGo or to the provider of their choice.”
BitGo Staking benefits include:
- Security architecture: each node runs on its own dedicated virtual machine so one client’s node cannot access other nodes or infrastructure
- No keys go online: seamless integration with BitGo Custody keeps assets in cold storage
- Multi-signature technology: the industry standard for institutional investors
- Choice of staking providers: delegate staking to BitGo Trust or use the staking provider of your choice
- Insurance: custodial assets are insured for up to $100 million
Ben Chan, CTO of BitGo, went on to add:
“In order to be a great custodian, we need to provide our clients with the ability to use their assets in custody. Staking provides our clients with returns on their investments without ever moving their assets out of custody. Our acquisition of Hedge builds on the blockchain and staking expertise within our engineering platform to deliver an automated, end-to-end staking service.”