Digital asset custodian BitGo has integrated with Stacks to bring Bitcoin (BTC) rewards to institutional investors, a motion that could strengthen the already-heightened institutional demand for crypto during the next leg of the balderdash market.

Beginning Monday, BitGo will offering institutional token holders the ability to earn Bitcoin rewards through the Stacks token, which is besides known as STX. Through a procedure known every bit Stacking, STX token holders can earn BTC rewards direct in their wallets.

Dissimilar other yield-earning services, BTC rewards generated through Stacking are non based on a lending sale, which means STX token holders do not need to lend their funds. Rather, Stacks claims that the yield is derived directly from its staking machinery, which is connected to the Bitcoin blockchain.

Every bit role of the integration, STX token holders will also have access to BitGo's insurance, asset protection and portfolio management solutions. BitGo recently expanded its crypto-insurance plan by $600 million, bringing the total value of assets covered to over $700 million.

Stacks is an open-source network for building smart-contract and DeFi bridges to Bitcoin. The platform launched its mainnet in Jan of this year and has secured several high-contour partnerships, including Foundry Digital and Blockdaemon, amongst others.

BitGo co-founder and CEO Mike Belshe said his company integrated Stacks because financial institutions accept been looking for a secure access point to the DeFi market. "By onboarding support for Stacks and STX, nosotros are giving our clients what they desire [...] without the need for expensive infrastructure investments," he said.

Institutional capital has flooded the cryptocurrency market this year, a trend that is expected to continue as Bitcoin and Ether (ETH) vie for new all-time highs. As Cointelegraph reported recently, institutional managers held a tape $72.three billion worth of crypto as of Oct. 17, marking the start all-time high since May.

Related: Grayscale hints at plans to convert Bitcoin trust into BTC-settled ETF

The recently approved ProShares Bitcoin Strategy substitution-traded fund (ETF) debuted final week with the highest-ever "natural" volume, signaling a readiness on the part of institutional investors to dabble in digital assets. A second futures-based ETF from Valkyrie was likewise canonical by the Us Securities and Commutation Committee concluding week.