Core Blockchain (Core DAO): The Destination for Bitcoin Yield & Bitcoin Staking
Core Blockchain (Core DAO): The Destination for Bitcoin Yield & Bitcoin Staking
2025: Core and the Rise of BTCfi
5 min read · January 7, 2025
2025: Core and the Rise of BTCfi

The year 2025 is a turning point for Bitcoin. In 2024, Bitcoin transformed from a passive store of value to a natively yield-bearing productive asset, capable of driving decentralized finance. Yet, billions of dollars in Bitcoin remain idle, held in wallets without generating yield. 2025 is where that changes.

Core, the first Proof of Stake Layer for Bitcoin, is transforming Bitcoin’s value proposition. Through Non-Custodial Bitcoin Staking, Dual Staking, and Satoshi Plus consensus, Core enables Bitcoin holders to earn sustainable yields while preserving self-custody and institutional-grade security.

In 2024, Core contributors laid the groundwork for Bitcoin DeFi (BTCfi). In 2025 and beyond, Core and its ecosystem participants are helping to scale this vision, unlocking a new wave of Bitcoin adoption.

Institutional-Grade Bitcoin Yield

Institutional adoption has transformed the conversation around Bitcoin. It has established Bitcoin as a legitimate store of value across financial profiles. However, merely holding Bitcoin is insufficient. Financial institutions managing billions of dollars in Bitcoin need yield, but also can’t compromise security or self-custody—needs that traditional Bitcoin yield solutions fail to meet.

Core bridges this gap with the only institutional-grade Bitcoin staking solution. Non-Custodial Bitcoin Staking opens up trustless access to Bitcoin-native yields, while Dual Staking (staking both BTC and CORE) grants institutions access to premier Bitcoin staking yields. In 2024, institutional access to these products ramped up with integrations with platforms like Fireblocks, Copper, Cactus Custody, BitGo, and Hashnote. These advancements signal a growing institutional desire for Core’s Bitcoin and CORE staking solutions.

"The institutional adoption of secure, sustainable, and scalable Bitcoin staking yield will be transformative," stated Kieran Dennis, Initial Core Contributor. "Protocols like Core are setting the stage by aligning Bitcoin’s principles with institutional needs, combining trustless security with tangible rewards. This shift will bring Bitcoin into the portfolios of major players, not just as a store of value but as a productive asset."

Core's Innovations: Bridging the Gap Between Potential and Adoption

Core addresses the key challenges hindering mainstream adoption of BTCfi. Its features cater to both institutional and retail users, offering solutions for security, liquidity, and usability:

  • Dual Staking: This feature rewards Bitcoin stakers who also stake CORE tokens, offering the highest Bitcoin staking rates exclusively to those staking both assets. "Dual Staking is probably the biggest development from 2024. For the first time, Bitcoin becomes a sustainable, yield-producing asset," noted Rich Rines, Initial Core Contributor.

Dual Staking.jpeg

Dual Staking.jpeg

  • lstBTC (Liquid Staked Bitcoin) (Coming Soon): Core's lstBTC solves Bitcoin’s liquidity problem, allowing staked Bitcoin to remain usable in DeFi. This bridges earning yield and maintaining flexibility, meaning Bitcoin holders no longer have to choose between security and utility.

  • Core-Powered ETPs (Exchange-Traded Products): Valour's yield-bearing Bitcoin ETP exclusively relies on Core to offer regulated and simplified access to Bitcoin and Bitcoin staking yield. Valour also launched a CORE ETP granting qualifying investors access to a regulated vehicle for holding CORE tokens. Core-powered ETPs grant unique BTCfi access to investors who prefer the familiarity and security of traditional investment vehicles.

  • CoreFi Strategy: DeFi Technologies’ CoreFi Strategy provides sophisticated investors with regulated, leveraged exposure to Bitcoin yields and the CORE token. This demonstrates the growing maturity of the BTCfi market and caters to institutional investors seeking more complex opportunities within the Core ecosystem.

As Core Contributor Rumeel aptly summarizes: “Dual Staking, lstBTC, Core ETPs, and CoreFi Strategy are not just technological advancements—they are the bridges connecting Bitcoin's potential to real-world adoption.”

Overcoming Challenges to Unlock Mass Adoption

Mass adoption of BTCfi faces hurdles: usability, scalability, and liquidity. As Kieran Dennis states, "The focus now shifts to scaling Bitcoin’s utility while staying true to its core principles of security, self-custody, and decentralization. Balancing innovation with these principles is crucial.”

Core Contributor Chanel Chuang highlights another key challenge, "In 2025, Bitcoin must address its lack of real-world utility beyond being a store of value." Core is directly addressing this by enabling Bitcoin holders to earn yield through Dual Staking, making their previously idle assets productive.

Core Contributor Diksha Sharma points out that wider adoption also requires addressing usability: "Bitcoin is brilliant, but for most people, it’s still too complicated when it comes to utility."

Core's intuitive design and user-friendly staking interface pave the way for mass adoption in 2025. As the most Bitcoin-aligned blockchain, Core scales Bitcoin while staying true to its foundational principles.

2025: The Year of Bitcoin-Native DeFi

Bitcoin-native DeFi is set to dominate in 2025. Unlike Ethereum-based solutions, which often compromise security or decentralization, Core delivers innovations that align closely with Bitcoin’s foundational principles.

Core Contributor Chanel Chuang predicts, "BTCfi in 2025 will focus on utility-driven innovations like tokenized yield products that bring liquidity to staked Bitcoin assets." Projects like lstBTC are at the forefront, developing new tools tailored specifically for Bitcoin.

This shift towards Bitcoin-native solutions, as highlighted by Core Contributor Rich Rines, could lead to "a significant portion of all active Bitcoin addresses becoming active on Bitcoin scaling solutions." A major shift is predicted by Rines: "The amount of Bitcoin in DeFi on Bitcoin-native chains could surpass the Bitcoin in DeFi on Ethereum-based chains. Both predictions are exciting milestones to consider for the ecosystem."

This underscores the growing appeal of blockchains like Core, which offer enhanced security and a more seamless user experience by staying closer to the Bitcoin base layer.

Core’s Expanding Ecosystem: Collaboration and Growth

Core’s growth thrives on a dynamic ecosystem of institutional partnerships, developer innovation, and community engagement. Leading financial institutions contribute their expertise, while a vibrant network of developers and users drives innovation and expands possibilities. These advancements are interconnected, creating a feedback loop of progress with Core at its center, shaping the future of decentralized Bitcoin finance.

Beyond institutional players, Core is fostering a vibrant community of developers and users. Anas Bitar, Co-founder and COO of BitFLUX, expresses the community's enthusiasm: "There is an eagerness to see Core really shake things up next year, maybe dive deeper into gaming or spice up their DeFi offerings!"

Kiki Ho, Head of BD Listing Team at CoinEx, also sees significant opportunities for synergy: “In 2025, it is hoped that Core will continue advancing its Satoshi Plus consensus and strengthening connections across the ecosystem. At CoinEx, we see opportunities to integrate with Core’s technology—such as expanding support for its ecosystem tokens and providing real-world use cases—which can help bridge the gap between technology and adoption.”

A Vision for the Future: Bitcoin as the Cornerstone of Decentralized Finance

A transformative role for Bitcoin is envisioned by Core Contributor Maryam in the coming years: "Building on Bitcoin's extraordinary 2024 performance—with a 139% surge in annual gains and a $2.1 trillion market cap boost—2025 will mark its transformation into the cornerstone of decentralized finance. Bitcoin could drive up to $15 trillion in annual on-chain transactions, anchor 40% of DeFi TVL by attracting institutions, and empower millions of unbanked individuals worldwide."

This vision is shared broadly within the Core community and the larger BTCfi space. Core Contributor Adam Bendjemil states, "Core DAO spent 2024 initiating sustainable hypergrowth movements, as all metrics currently show. A continuation is anticipated for the BTCfi space, and especially Core, to grow all major metrics by a factor of 10."

Core's Leading Role in the Bitcoin Revolution

The future of Bitcoin finance is bright, and Core leads the charge. With its innovative solutions like Dual Staking and lstBTC, and designed with a commitment to Bitcoin's core values, Core is driving the growth of BTCfi and unlocking unprecedented opportunities for users worldwide. With 2025 now here, Core is positioned to empower the next wave of Bitcoin adoption. Join the revolution and discover how Core is transforming Bitcoin finance at https://coredao.org.