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BitGo integrates Stacks to generate income in Bitcoin

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BitGo digital asset custodian provided customers with the opportunity to earn income in Bitcoin (BTC) using Stacks (STX), the native token of the Blockstack project.

Stacks is an open-source network for creating smart contracts and DeFi bridges to Bitcoin. Initially, the protocol used the hash power of the first cryptocurrency network in combination with the Proof-of-Burn mechanism.

Later, the startup team developed a new consensus mechanism (Proof-of-Transfer, PoX). With the launch of Stacks 2.0 in January 2021, stakeholders began to receive income in BTC. And miners began to use digital gold for STX mining.

Participation in the network by offering rewards

According to Stacks CEO and co-founder Muneeb Ali, PoX can stimulate participation in the network by offering rewards in Bitcoin, which was not possible before the advent of the protocol.

STX holders will also have access to BitGo’s insurance, asset protection and portfolio management solutions. According to custodian CEO Mike Belshe, the company took this step because of the interest of financial institutions in the DeFi market.

Blockstack was created in 2013. The project, which is also known for its work on the decentralized Internet, previously managed to attract investments of $50 million. From well-known representatives of the blockchain industry and venture capital companies, including the Winklevoss brothers; Union Square Ventures; Digital Currency Group; and VersionOne.

Blockstack

In 2019, New York-based Blockstack became the first company to receive approval from the SEC; to conduct a tokensale in accordance with the established regulation “A+”. Later in September 2019, the Blockchain cryptocurrency wallet provider announced the start of STX support in the product line for retail and institutional investors. Thereafter in the same month, Blockstack raised $23 million during the first regulated crowdsale in the United States.

In 2020, the company reported reaching one million registered users and gaining access to $6.8 million in funding. Moreover, in August 2020, Blockstack provided Stacks Foundation with 100 million STX tokens. For a total of $27 million to increase the decentralization of the network.

Recall that previously in October 2021, BitGo’s managing director for the EMEA region, Darren Jordan, noted the demand of corporations for regular purchases of Bitcoin.

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