January 12, 2025 – In a landmark development for Bitcoin holders, Bitlayer has unveiled the first SEC-compliant BTC staking pool, enabling yield generation on Bitcoin without custody risks. The solution offers 3.2% annualized returns through an insured, non-custodial model underwritten by Aon and audited by Deloitte.

Key Features of the BTC Staking Pool

1. Regulatory First

   • Explicit approval under SEC’s 2024 Digital Asset Securities Framework (DASF).

   • Complies with MiCAR in EU and Hong Kong’s VASP licensing requirements.

2. Non-Custodial Architecture

   • Users retain private keys via threshold signature schemes (TSS).

   • $250 million insurance coverage against hacks/failures via Aon’s crypto division.

3. Yield Mechanism

   • BTC converted to wrapped BTC (wBTC) for cross-chain staking on Ethereum, Polkadot.

   • Real-time APY adjustments based on network demand (range: 2.8%-3.8%).

Why This Matters

• For Bitcoiners: First native yield opportunity without selling BTC or trusting centralized lenders.

• For Institutions: Compliant alternative to grayscale’s 1.5% fee structure.

• For DeFi: Bridges $850B Bitcoin liquidity into proof-of-stake ecosystems.

Market Impact

• Adoption: $420M BTC staked within 72 hours (per Nansen data).

• Price Action: BTC spikes 5.7% post-announcement (vs. ETH +2.1%).

• Competitor Response: Coinbase files for similar product with 4% target APY.

Technical & Security Details

• Audits: Smart contracts verified by Halborn (score: 9.8/10).

• Slashing Protection: 0% penalty for downtime (vs. ETH’s 0.25%).

• Liquidity: Instant unwrapping to BTC via BitGo’s liquidity pools.