Key Takeaways

  • Staking turns custody into revenue. For banks, staking can transform digital asset custody from a cost center into a scalable, fee-based service.

  • Clients want participation without complexity. Staking allows end customers to earn protocol rewards while keeping assets in cold custody. 

  • Revenue without balance sheet risk. Staking generates non-interest income without lending, trading, or credit exposure.

Staking transforms digital asset custody from a cost center into a revenue-generating service.

For banks, it is not about speculation. It is about enabling participation in digital financial infrastructure while creating scalable, fee-based income.

For clients, it is about something more practical: earning rewards on digital assets without sacrificing security or operational clarity.

As digital assets continue to move from the margins into mainstream portfolios, banks are increasingly being asked to do more than simply hold assets. Clients want participation, not just safekeeping. Staking offers a responsible and familiar way to meet that expectation.*

Why Staking Is Resonating With Banks and Their Clients

Proof-of-stake networks now underpin a growing share of on-chain financial activity. Participation in these networks is no longer experimental. It is foundational.

Staking allows clients to contribute to network security and receive protocol rewards in return. For many clients, however, direct participation is impractical. Managing validators, infrastructure, and operational risk introduces complexity most banks are not built to handle.

Banks are uniquely positioned to bridge that gap by offering staking as a managed service built on existing custody and compliance frameworks.

What Staking Means for a Bank’s End Customers

For a bank’s end users’ perspective, the value of staking is straightforward.

They not only want their assets to work, but work safely.

When staking is offered through a bank:

  • Assets remain in custody with a regulated institution

  • Participation does not require technical expertise

  • Rewards are generated at the protocol level

  • Reporting, controls, and oversight remain consistent

How Staking Creates a Durable Revenue Model for Banks

Staking aligns naturally with how banks already generate value, and is a natural extension of asset servicing.

For example, clients can delegate selected assets to validators and retain a portion of the protocol rewards as a service fee. The remaining rewards flow back to the client.

Revenue scales with assets under custody and participation, without introducing trading risk or balance sheet exposure.

Stronger Client Engagement and Retention

By enabling staking, banks increase wallet engagement and reduce the likelihood that clients move assets to crypto-native platforms solely to earn rewards. Over time, this deepens client relationships and reinforces the bank’s role as a long-term partner rather than a passive custodian.

Fee-Based Income Beyond Interest Rate Cycles

Staking fees are independent of loan growth and interest rate environments. For banks seeking to diversify revenue, staking provides non-interest income that grows alongside digital asset adoption rather than macroeconomic cycles.

Banks Have a Structural Advantage

Banks already operate the infrastructure required to deliver staking responsibly:

  • Regulated custody frameworks

  • Established compliance and risk controls

  • Institutional-grade security and key management

  • Trusted client relationships

  • Mature reporting and reconciliation systems

Staking builds on these strengths. It extends them into on-chain infrastructure.

BitGo’s Role in Enabling Bank-Grade Staking

BitGo supports banks and financial institutions by providing the infrastructure required to offer staking securely and at scale.

Through institutional custody, granular policy controls, and integrations with trusted validator partners, BitGo enables banks to launch staking services while maintaining oversight and segregation of assets. BitGo’s infrastructure and APIs allow staking to be integrated directly into the bank’s frontend as an extension of custody and asset servicing, enabling the bank to offer staking to end users for reward generation, as well as to stake its own proprietary assets for institutional yield, without using customer funds. 

Looking Ahead

As digital assets mature, clients will increasingly expect their assets to be productive, not idle. Banks that offer staking can meet that expectation while strengthening trust, deepening organic growth of customer relationships, and unlocking scalable fee-based revenue.

With the right infrastructure in place, staking allows banks to participate meaningfully in the next phase of financial market evolution without compromising on security or compliance.

Frequently Asked Questions

Is staking lending or balance sheet exposure for banks?

No. Staking does not involve lending assets or extending credit. Assets remain under custody and are delegated to validators to support network operations. Rewards are generated at the protocol level.

How can banks make money from staking?

Banks may retain a portion of the protocol rewards as a service fee. This fee compensates the bank for operating staking infrastructure, reporting, and risk controls.

Do client assets ever leave custody when staked at BitGo?

No. Client assets remain in custody at all times when assets are staked under BitGo’s infrastructure. Staking is a delegation process, not a transfer of ownership.

Is staking considered speculative?

Staking is best understood as infrastructure participation. Clients earn rewards for contributing to network security, not from price movements or trading activity.

What risks should banks consider?

As with any digital asset service, banks evaluate operational, slashing, and network risks. These risks are managed through validator selection, monitoring, and policy frameworks.

Why would clients prefer bank-led staking?

Clients benefit from institutional custody, compliance alignment, clear reporting, and reduced operational complexity. For many, staking through a bank is the only way participation meets internal risk standards.

Disclaimer: * Staking involves risk, including the potential for slashing penalties, variable or reduced rewards, and temporary lockups/unbonding periods that may limit liquidity, and outcomes may be impacted by validator performance or blockchain network events. Participation is not guaranteed and clients may lose rewards and, in some cases, principal.

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About BitGo

BitGo is the digital asset infrastructure company, delivering custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. Since our founding in 2013, we have been focused on accelerating the transition of the financial system to a digital asset economy. With a global presence and multiple regulated entities, BitGo serves thousands of institutions, including many of the industry's top brands, exchanges, and platforms, and millions of retail investors worldwide. For more information, visit www.bitgo.com.

©2026 BitGo, Inc. (collectively with its parent, affiliates, and subsidiaries, “BitGo”). All rights reserved. BitGo Bank & Trust, National Association (“BitGo Bank & Trust”) is a national trust bank chartered and regulated by the Office of the Comptroller of the Currency (OCC). BitGo Bank & Trust is a wholly-owned subsidiary of BitGo Holdings, Inc., a Delaware corporation headquartered in Palo Alto, California. Other BitGo entities include BitGo, Inc. and BitGo Prime LLC, each of which is a separately operated affiliate of BitGo Bank & Trust.

BitGo does not offer legal, tax, accounting, or investment advisory services. The information contained herein is for informational and marketing purposes only and should not be construed as legal, tax, or investment advice. You should consult with your own legal, tax, and investment advisor for questions about your specific circumstances.

Digital assets are subject to a high degree of risk, including the possible loss of the entire principal amount invested. Past performance and illustrative examples do not guarantee future results. The value of digital assets can fluctuate significantly and may become worthless. No BitGo communication is intended to imply that any digital asset services are low-risk or risk-free. BitGo is not a registered broker-dealer and is not a member of the Securities Investor Protection Corporation (“SIPC”) or the Financial Industry Regulatory Authority (“FINRA”). Digital assets held in custody are not guaranteed by BitGo and are not subject to the insurance protections of the Federal Deposit Insurance Corporation (“FDIC”) or SIPC. Custody and other digital asset services are subject to eligibility, jurisdictional, and regulatory restrictions. Availability of specific products and services may vary by location and entity.

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