Nomic introduces Bitcoin liquid staking for Cosmos users
stBTC offers Bitcoin holders yield-earning potential in Cosmos.
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Nomic DAO Foundation has announced the Bitcoin (BTC) liquid staking token (LST) stBTC, through the integration of Babylon’s Bitcoin staking protocol into its non-custodial bridge. Nomic’s platform will now be secured by both staked BTC and its native token, NOM.
Unlike traditional BTC staking, Nomic’s solution allows for the exchange of BTC for nBTC tokens, which are transferable across blockchains compatible with Cosmos’ Inter-Blockchain Communication (IBC) structure. Users can mint stBTC by locking nBTC in Nomic’s Staking Pool, with the option to redeem their stBTC for BTC or nBTC, while also receiving rewards through IBC account transactions.
“Nomic and Babylon provide two important primitives to Bitcoin: decentralized custody and staking,” said Matt Bell, CEO of Turbofish. “By pairing the two, their impact is magnified, making a more practical solution for the average Bitcoin holder to earn yield through staking.”
Liquid staking tokens represent a relevant sector of the decentralized finance (DeFi) ecosystem, amassing over $50 billion in total value locked (TVL). The collaboration with Babylon enhances Nomic’s security and provides Bitcoin holders on Cosmos ecosystem a new way to stake and earn yield.
“We are thrilled to see Babylon’s Bitcoin staking protocol play a crucial role in Nomic’s launch of stBTC,” stated David Tse, co-founder of Babylon. “This is a major step forward for Bitcoin holders that will allow them to use their staked Bitcoin for DeFi, while still supporting the security of Proof-of-Stake systems.”
stBTC is currently active on the testnet, allowing users to explore its functionality and benefits ahead of the mainnet release.
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