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pSTAKE Finance adds liquid staking for Bitcoin

Published date:

February 6, 2026

pSTAKE Finance adds liquid staking for Bitcoin

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pSTAKE Finance, a platform backed by the venture capital arm Binance Labs, has introduced a groundbreaking liquid staking solution for Bitcoin. This innovation represents a significant milestone in crypto staking evolution, bringing yield-generating capabilities to the world's largest cryptocurrency for the first time through institutional-grade infrastructure.

As stated by pSTAKE in its blog post, "The innovation will help illuminate the emerging BTCfi industry, which currently utilizes less than 1% of the trillion-dollar market cap possessed by Bitcoin. pSTAKE intends to be a catalyst to spur BTCfi growth by providing a direct route to earning a yield for BTC deposits with Babylon."

Typically, Proof-of-Work tokens like Bitcoin (BTC) use crypto mining instead of staking to verify transactions on the blockchain. However, Babylon's staking protocol circumvents this notion by allowing Proof-of-Stake networks to receive staking assets from PoW chains.

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As such, pSTAKE Finance has collaborated with Babylon to improve Bitcoin's yield-generating capabilities. Designed atop Babylon's Bitcoin staking protocol, pSTAKE Finance's solution aims to streamline the staking process for the most popular crypto token.

pSTAKE's latest yield generating product also marks the company's first venture into the Bitcoin ecosystem following three years of developing its liquid staking protocol on Cosmos. Meanwhile, DeFi innovations centered around Bitcoin have seen an uptrend in popularity since its fourth halving event, which also coincided with the launch of Bitcoin Runes. In fact, Binance Labs has also revealed its plans to invest into BounceBit, a restaking protocol for Bitcoin.

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Ayush Pande

Written by:

Ayush Pande

Writer

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

As a tech enthusiast who's always on the prowl for the latest developments concerning crypto and hardware, you can find him covering news stories or tinkering with PCs.

About the Author

Radica Maneva

Reviewed by:

Radica Maneva

Senior Editor

Radica is a Senior Editor at Bitcompare. She has worked for more than a decade at leading publications as an Editor across various industries, including crypto and finance.

Bitcompare is a trading name of Blue Venture Studios Pty Ltd.

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