Babylon and Acre have unveiled new self-custodial Bitcoin staking protocols, significantly expanding user options for maintaining control while staking BTC. These initiatives, announced at the Bitcoin Asia 2025 Conference, empower Bitcoin holders to earn yields without custodial risks, potentially increasing decentralized finance activities and attracting regulatory attention globally.
The move increases Bitcoin's security, simplifies stake management, and resonates with both retail and institutional investors, intensifying market dynamics.
Babylon and Acre Offer High APY in Bitcoin Staking
Babylon and Acre have unveiled initiatives to simplify Bitcoin earning. With Acre's V2 vaults offering 14% APY, these platforms emphasize self-custody, eliminating traditional custodial risks for users.
Babylon's open-source protocol has gained traction by enabling BTC natives to earn rewards. Both projects prioritize security and user control, marking a significant shift in Bitcoin staking methodologies.
Growing Institutional Interest in Non-Custodial Platforms
The new platforms are poised to enhance Bitcoin market liquidity and user confidence. Users are likely to transition from custodial exchanges to these stable, self-managed options, potentially encouraging more institutions to enter the DeFi space.
These developments carry significant financial implications, including higher engagement in DeFi protocols. The projects aim to support BTC without additional token exposure, which could attract cautious investors seeking non-custodial options.
Non-Custodial Staking Gains Momentum Post-Centralized Exchange Challenges
Historically, Bitcoin staking often required wrapping, which introduced custodial challenges. The launch of these new platforms reflects a growing preference for direct, non-custodial frameworks, a trend amplified by the past difficulties faced by centralized exchanges.
These developments are focused on increasing security, which could lead to wider protocol adoption and integration. As regulatory landscapes evolve, further adoption and technological improvements are anticipated.
Acre's Commitment to Security and Transparency
Laura Wallendal, CEO of Acre, stated, "Today, Bitcoin holders are forced to choose between giving up control to a custodian or navigating all the complexity of DeFi—bridging, vault rotation, rebalancing, and selling off altcoins—often for barely 1% in yield. Acre removes that tradeoff by providing a secure, transparent way to earn compounding yield on BTC, without custodial risk or typical DeFi complexity."