Bitcoin Staking is Here: Where, How and Tips
True, native Bitcoin staking is now a reality in 2025 thanks to a new trustless protocol.
Unlike traditional methods involving wrapped BTC (WBTC) or exchange-based lending (where you give up your coins to a custodial platform), Babylon Labs introduced a decentralized, trustless system that allows Bitcoin holders to natively stake their BTC securely to earn rewards while maintaining self-custody and control.
How is Bitcoin Staking Possible?
Babylon’s new protocol enables Bitcoin holders to stake their BTC as collateral to provide economic security for Proof-of-Stake (PoS) systems, Layer-2 rollups, and other decentralized applications. This is done without bridging or wrapping Bitcoin, preserving its native integrity and saving gas fees and additional smart contract risks. Stakers earn yield by contributing to the security and consensus of these networks while benefiting from Bitcoin’s inherent safety and decentralization.
Babylon’s staking is non-custodial, meaning you don’t have to hand over your private keys to a third party. By integrating Bitcoin staking directly into decentralized systems, Babylon provides a secure and scalable way for Bitcoin to participate in staking economies. This gives Bitcoin the new ability to earn staking rewards.
Where to Stake Bitcoin?
Babylon’s Bitcoin staking protocol can be accessed through participating partners, exchanges and platforms. Binance is among the first major exchanges to offer Bitcoin staking powered by Babylon’s infrastructure (starting Dec. 2024). This integration enables users to existing Binance users to access Bitcoin staking.
Bittrue also has implemented Bitcoin Staking, paying 2.3% APY.
Bitcoin Staking Rewards
When you stake Bitcoin, here is how it works and how you earn rewards:
- You earn yield for delegating BTC to PoS validators.
- Your staked BTC acts as collateral, providing network security against malicious behavior, like double-spending or forking attacks.
- Rewards are generated from staking fees on the underlying PoS validator.
Natively, this means you earn PoS staking rewards, not directly in BTC. However, if you use an exchange, you can earn BTC in-kind.
Bitcoin Staking Rates
Bitcoin staking reward rates should match the underlying PoS staking rewards. We expect to see 2-6% APY for native Bitcoin Staking.
Tips for Bitcoin Staking
- Understand the Protocol: Research how Babylon’s Bitcoin staking system works and its role in securing PoS systems and Layer-2 rollups.
- Choose Reliable Partners: Stake through trusted exchanges like Binance or decentralized nodes verified by Babylon. We will create more guides in the near future.
- Secure Your Wallets and Accounts: If natively staking, ensure your self-custodial wallets are properly secured.
- Monitor Bitcoin Staking Rewards: Keep track of staking yields.
The Future of Bitcoin Staking
Bitcoin staking protocol is a breakthrough in upgrading BTC with modern staking rewards while maintaining its trustless and secure nature. By unlocking Bitcoin’s utility in decentralized networks, Bitcoin staking creates new opportunities for yield generation without compromising its core principles.
For more details, visit Babylon’s official website to explore how their protocol is revolutionizing Bitcoin staking.