Today we are announcing BitGo Trust’s Staking Services. Our BitGo Trust clients can now generate passive income on their investments while the assets remain in our secure, insured cold storage. We are also announcing BitGo’s acquisition of Hedge, a staking infrastructure provider that is making our staking services possible.
At BitGo, we provide custodianship that is secure, compliant, and offers a range of financial services for generating returns. Staking is a necessary part of this feature line up and we’re pleased to launch with support for Dash and Algorand. Clients can delegate staking to BitGo or we can integrate with third-party staking providers.
Our acquisition of Hedge was key in ensuring that our staking service is scalable and performant. Hedge’s scalable infrastructure automates the setup and deployment of staking nodes. Hedge’s business has its roots in the development of technology for hardware security modules and wallet services, making them an excellent fit for our security approach.
In addition to generating passive returns, staking is a necessary measure to safeguard the assets from network’s inflation. Since the rewards are partially generated through supply inflation imposed on the entire network, assets that are not staked will suffer from inflation. However, since not all asset holders participate in staking, participants stand to receive outsized rewards.
When you stake at BitGo, our platform allows for the delegation of staking functions to online systems from our qualified, insured, cold storage. While staking happens in an online environment, the principal assets never leave our secure, insured cold storage.