Tl;DR: lstBTC is a liquid staking token issued on the Core blockchain that allows institutions to earn BTC-denominated yield securely while retaining liquidity and their existing custody arrangements.
Bitcoin is the world’s largest digital asset, yet for institutions, it has remained financially inefficient, as it has never been simultaneously secure, yield-generating, and liquid. Now, with lstBTC, institutions can finally earn BTC-denominated yield without giving up security, liquidity, or their existing custody arrangements.
lstBTC is the perfect vehicle for institutional Bitcoin holders first and foremost because of the trusted entities responsible for custodying and managing the principal Bitcoin. BitGo, Copper, and Hex Trust are among the most trusted institutional custodians in Bitcoin finance, and they are the ones directly responsible for continuing to custody institutional Bitcoin. When institutional clients of these custodians mint lstBTC, their principal Bitcoin remains under the same trusted custody arrangements, enabling seamless security and continuity.
In addition to well-known institutions, the highly trusted on-chain financial management platform Maple Finance manages the backend of lstBTC. Its primary responsibility is to safeguard the Bitcoin principal while optimizing yields via Core’s Dual Staking mechanism.
Why lstBTC Matters
For institutions, earning yield on Bitcoin has always involved a significant trade-off:
- Earn secure yield through Bitcoin Staking on Core, but lose liquidity, or
- Maintain some liquidity, but sacrifice the security of Core’s Bitcoin Staking mechanics
lstBTC solves this problem by simultaneously delivering yield, security, and liquidity. For institutions already staking Bitcoin with their preferred custodians, upgrading to lstBTC offers a clear advantage by unlocking liquidity while keeping their Bitcoin under the same trusted custody arrangements.
How lstBTC Works: Simple, Secure, Liquid
- Mint lstBTC: The institution deposits Bitcoin with institutional custodians (BitGo, Copper, or Hex Trust) and receives lstBTC (a liquid token)
- Earn BTC Yield: With permission from the trusted custodian, Maple Finance uses Core’s Dual Staking mechanism to earn yield on the principal Bitcoin while balancing positions to protect the principal.
- Stay Liquid: While earning yield on the backend, institutions have full control over their liquid lstBTC token, which can sit passively and earn yield to offset custody costs or be used as collateral to trade on major exchanges.
- Redeem: The institution can swap lstBTC for Bitcoin plus the accrued yield with custodian.
Why lstBTC Is a Game-Changer for Institutions
Real Yield on Bitcoin—Without Sacrifices
- BTC-Denominated Returns: Unlike liquid Bitcoin derivatives that offer points or promises as yield, lstBTC includes yield denominated in actual Bitcoin.
- Powered by Dual Staking: Yield comes from on-chain activity and CORE token block rewards, not from loans or other risky practices.
- Sustainable and Transparent: Institutions can verify all the processes on-chain or through their trusted custodian and/or Maple Finance.
Institutional-Grade Security
- Best-in-Class Custodians: Principal Bitcoin, which is deposited to mint lstBTC, remains secured by BitGo, Hex Trust, and Copper, and never leaves their custody.
- Fully Compliant & Audited: Custodians undergo regular security audits, upholding institutional-grade protections.
Full Liquidity
- Collateral Asset: lstBTC can be used as collateral to trade on major exchanges, enabling institutions to offset custodian and platform fees with live yield.
- Uninterrupted Yield: Maple Finance’s management maintains optimal yield generation behind lstBTC.
- Redeem Anytime: Swap lstBTC back to Bitcoin + Yield with existing trusted custodians, never shifting custody arrangements.
Secure. Yield-bearing. Liquid.
Backed by Industry Leaders
lstBTC is a joint initiative by digital asset infrastructure leaders:
- Maple Finance – A leader in institutional on-chain financial management.
- Custodians: BitGo, Copper, Hex Trust – Leading providers of institutional-grade custody solutions.
- Core Foundation – Dedicated to growing the Core blockchain ecosystem.
🔗 Learn More: lstbtc.coredao.org
📩 Institutional Inquiries: inquire@coredao.org