pStAKE Finance, a liquid staking protocol backed by Binance Labs, has introduced its liquid staking solution for Bitcoin as part of the growing Bitcoin-native decentralized finance (DeFi) movement. The solution, built on top of Babylon’s Bitcoin staking protocol, aims to simplify the staking process for Bitcoin holders and provide additional yield generation opportunities. Mikhil Pandey, the co-founder and chief strategy officer of pSTAKE Finance, stated that the initiative is driven by the belief that Bitcoin can become a yield-generating asset. This development is part of the broader Bitcoin DeFi (BTCFi) movement, which aims to bring DeFi capabilities to the original blockchain network. Interest in Bitcoin-native DeFi has been increasing since the 2024 halving, which also saw the launch of Bitcoin Runes, a protocol for issuing fungible tokens on the Bitcoin network. Binance Labs, the independent venture capital arm of Binance, has also shifted its focus to BTCFi and recently invested in the Bitcoin-native restaking protocol BounceBit. The launch of pSTAKE’s liquid staking solution represents its first foray into Bitcoin-native DeFi, after previously building its liquid staking protocol on Cosmos. This development is part of a broader trend of protocols aiming to make Bitcoin a yield-generating asset. For example, Hermetica recently announced the upcoming launch of USDh, a Bitcoin-backed synthetic United States dollar with yield-generating capabilities. According to pStake’s co-founder, the BTCFi industry is witnessing the emergence of promising products that enhance the capital efficiency of Bitcoin. However, he believes that further development is necessary for BTCFi to reach the level of DeFi on the Ethereum network. Despite this, making Bitcoin a more versatile asset presents a significant financial opportunity.
Binance-supported pSTAKE Finance unveils a liquid staking solution for Bitcoin.