RootstockLabs Unveils Rootstock Institutional to Unlock Bitcoin’s DeFi Potential
Over 2.6 million Bitcoin (BTC) held by institutions is currently idle. However, RootstockLabs aims to change this. On october 14,the company launched Rootstock Institutional,a new initiative to explore how institutions can use their BTC in DeFi.
Rootstock Institutional will focus on enabling institutions to earn yield on their BTC. They can achieve this through lending, borrowing, and other on-chain strategies. Richard Green, Managing Director of Rootstock Institutional, explains, “Institutions are looking for sustainable, transparent ways to use their Bitcoin without risking their long-term holdings.”
Currently, 99% of institutional BTC generates negative returns due to custody fees. But this presents a financial opportunity. By march 2025, bitcoin-native DeFi grew 2,700% year over year, reaching $8.6 billion in total value locked. However,this is just 0.79% of the BTC supply, compared to 50% for Ethereum.
Richard Green believes, “Bitcoin’s shift from a store of value to a productive asset is a important opportunity in digital finance.” Family offices, web3 funds, and exchanges are already working with Rootstock to deploy their Bitcoin.
RootstockLabs aims to tap into the $260 billion in institutional BTC, transforming it into a productive financial asset. This move could revolutionize how institutions use their Bitcoin holdings.
