Bitcoin's Institutional Yield Revolution: Core & Hex Trust's Dual Staking Unlocks Secure BTCFi for APAC and MENA Markets

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Thursday, Aug 21, 2025 7:49 am ET3min read
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Aime RobotAime Summary

- Core and Hex Trust’s Dual Staking model enables secure, compliant institutional Bitcoin staking in APAC and MENA markets.

- The partnership addresses custody risks by allowing institutions to stake BTC and CORE tokens without surrendering asset control.

- BTCFi’s $5.5B ecosystem, driven by staking and RWA integration, is projected to grow to $200B as yield-generating strategies attract institutional capital.

- Challenges include liquidity fragmentation and regulatory uncertainty, though self-custody solutions and compliance frameworks mitigate adoption risks.

- Investors are advised to diversify into BTCFi yield strategies while prioritizing security and monitoring RWA developments for capital efficiency.

The evolution of

from a speculative asset to a foundational pillar of decentralized finance (DeFi) has been one of the most transformative developments in modern financial markets. By August 2025, Bitcoin Finance (BTCFi) has emerged as a $5.5 billion ecosystem, driven by innovations in staking, lending, and programmability. At the heart of this transformation lies a critical shift: institutional investors are no longer merely holding Bitcoin as a store of value but actively deploying it to generate yield. This transition is being accelerated by partnerships like the one between Core Foundation and Hex Trust, which are redefining how institutions engage with Bitcoin in the Asia-Pacific (APAC) and Middle East and North Africa (MENA) markets.

The Strategic Case for Institutional-Grade Staking

Core's Dual Staking model, integrated into Hex Trust's regulated custody infrastructure, represents a paradigm shift in Bitcoin's utility. By allowing institutions to stake both Bitcoin (BTC) and Core's native token (CORE) while retaining full custody of their assets, the partnership addresses two critical pain points: security and compliance. Traditional staking models often require users to surrender control of their assets to third-party validators, exposing them to counterparty risk. Core's solution, however, leverages Bitcoin's base layer security and EVM-compatible smart contracts to enable trustless yield generation. This dual-asset approach not only enhances network security but also diversifies revenue streams for institutions, who can now earn block rewards and transaction fees simultaneously.

The strategic implications for APAC and MENA markets are profound. These regions, characterized by rapid digital asset adoption and evolving regulatory frameworks, are now equipped with a scalable, institutional-grade solution that aligns with global compliance standards. Hex Trust's live reward calculator, for instance, empowers institutions to optimize staking strategies in real time, a feature critical for portfolio managers seeking to balance risk and return. As Calvin Shen, Hex Trust's Chief Commercial Officer, notes, this collaboration “delivers secure, high-quality staking solutions to family offices and institutional clients, contributing to sustainable growth in the Bitcoin economy.”

Financial Implications: Yield, Liquidity, and Market Expansion

The financial case for BTCFi is equally compelling. With over $7.39 billion in total value locked (TVL) across Bitcoin staking protocols, the sector is on track to become a $200 billion market. Core's Dual Staking model has already attracted $615 million in staked BTC, demonstrating strong demand for yield-generating strategies. For institutions, the ability to earn 5–6% annualized returns through Bitcoin staking ETFs in Europe and similar products in APAC and MENA is a game-changer. This is particularly relevant in a macroeconomic environment where traditional fixed-income yields remain subdued.

Moreover, the integration of Bitcoin into tokenized real-world assets (RWAs) is unlocking new liquidity pools. For example, Tether's upcoming

on the Lightning Network could inject $150 billion in stablecoin liquidity into BTCFi, enabling decentralized lending and trading markets. This liquidity expansion is not just theoretical—it is already materializing. By Q2 2025, CDP-based stablecoins like Avalon's USDa had attracted $559 million in TVL, while high-yield offerings such as Hermetica's 25% APY product highlighted the growing appetite for capital efficiency.

Challenges and the Path Forward

Despite these advancements, challenges persist. Bitcoin's cautious culture, rooted in its original design as a trust-minimized asset, means many institutions remain wary of experimental sidechains or wrapped tokens. Additionally, liquidity fragmentation across protocols and the need for robust

systems in CDPs pose operational hurdles. Regulatory clarity will also be pivotal in determining the speed of adoption, particularly in markets where digital asset frameworks are still maturing.

However, the partnership between Core and Hex Trust mitigates many of these risks. By prioritizing self-custody and regulatory compliance, the duo is setting a precedent for how institutions can safely navigate the BTCFi landscape. Hong Sun, Core's Institutional Contributor, emphasizes that this collaboration “aligns with our mission to transform Bitcoin into a productive asset,” a vision that resonates with the broader trend of institutional capital seeking yield in a low-interest-rate world.

Investment Advice: Positioning for BTCFi's Inflection Point

For investors, the BTCFi ecosystem presents a unique opportunity to capitalize on Bitcoin's next phase of growth. Here are three strategic considerations:

  1. Diversify Yield Strategies: Allocate a portion of Bitcoin holdings to staking protocols like Core's Dual Staking, which offer both block rewards and transaction fee shares. This dual-income model provides resilience against market volatility.
  2. Prioritize Security and Compliance: Opt for custodial solutions like Hex Trust's platform, which ensure institutional-grade security while adhering to regional regulatory standards.
  3. Monitor RWA Integration: Track developments in Bitcoin-backed RWAs, such as tokenized U.S. Treasuries and private credit, which could unlock new liquidity and use cases for BTCFi.

In conclusion, Bitcoin's institutional yield revolution is not just a technological innovation—it is a structural shift in how capital is deployed in the digital age. Core and Hex Trust's Dual Staking model exemplifies this shift, offering a secure, scalable, and compliant pathway for institutions to participate in BTCFi. As APAC and MENA markets embrace these solutions, the broader Bitcoin ecosystem stands to benefit from a surge in liquidity, innovation, and mainstream adoption. For investors, the message is clear: the future of Bitcoin is no longer just about holding—it's about earning.