Rootstock plans unlock $260b in idle institutional Bitcoin
RootstockLabs launched Rootstock Institutional, aiming to deploy $260 billion in institutional Bitcoin into DeFi.
- RootstockLabs launched Rootstock Institutional to explore institutional Bitcoin uses
- Major institutions currently own $260B in BTC that remains idle
- Institutions could deploy this idle BTC in DeFi, earning yield for investors
Over 2.6 million Bitcoin ( BTC ) held by institutions remains idle, but this could soon change. On Tuesday, October 14, RootstockLabs, a key contributor to Rootstock, the first Bitcoin layer-2, announced the launch of Rootstock Institutional.
The new team will focus on ways that institutions can tap into BTC’s DeFi potential. Namely, institutions could use Rootstock, a DeFi layer for Bitcoin, to obtain yield on their BTC. Specifically, institutions can use BTC for lending and borrowing, together with other on-chain yield strategies.
“The market has evolved beyond simple Bitcoin holding. Institutions managing significant Bitcoin treasuries are seeking sustainable, transparent on-chain frameworks without compromising their long-term position,” said Richard Green, Managing Director of Rootstock Institutional and Ecosystem at RootstockLabs.
99% of institutional Bitcoin generates negative returns
According to RootstockLabs’ Institutional BTCFi Report , institutions hold 2.6 million BTC in ETFs, corporate treasuries, and mining reserves. However, 99% of this BTC generates negative returns, as firms have to pay custody fees, which range from 0.1% to 0.5% annually.
Despite this, these reserves present a significant financial opportunity for holders. By March 2025, Bitcoin-native DeFi grew 2,700% year over year to $8.6 billion in total value locked. However, this figure still amounts to just 0.79% of the BTC supply, compared to 50% for Ethereum.
“Bitcoin’s evolution from pure store of value to productive financial asset represents one of the most significant opportunities in digital finance,” said Richard Green. “We’re already seeing this firsthand, family offices, web3 funds, exchanges, and bitcoin-first firms are actively working with us to deploy their Bitcoin on Rootstock.”
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Zcash Latest Updates: ZEC Faces $380 Test—Will Grayscale’s ETF Halt the Decline?
- Zcash (ZEC) tests critical $380 Fibonacci support as price falls below $480, triggering bearish technical signals like a double-top pattern. - Grayscale's proposed Zcash ETF (ZCSH) aims to institutionalize ZEC access but risks amplifying volatility if demand exceeds supply. - Fed's cautious rate-cut projections and declining on-chain activity (open interest, volume) highlight tension between macro optimism and weak near-term fundamentals. - Templar Protocol's ZEC-native lending feature enhances DeFi util

Bitcoin News Update: Ark Invest Makes Daring Moves in Crypto and AI Despite Market Slump
- Ark Invest spent $88M on crypto assets in November 2025, defying market declines by buying undervalued tech/crypto equities. - Major purchases included $25M in Coinbase , Circle , and Block shares, now holding 5.22% of ARKK's portfolio. - CEO Cathie Wood contrasted current AI/crypto growth with past bubbles, viewing downturns as strategic buying opportunities. - The firm also invested $56M in Alphabet and $29.4M in AI firm CoreWeave , emphasizing sector readiness over speculation. - With Bitcoin near $87
FCA's Crypto Sandbox Strives to Foster Innovation While Safeguarding Investors
- Coinbase and Kraken join UK FCA's crypto sandbox to test new disclosure rules, aiming to boost transparency and align with global standards. - FCA's 2026 roadmap mandates detailed risk assessments for unbacked crypto, stablecoins, and tokenized assets, with Eunice developing compliance templates. - U.S. regulators and banks like U.S. Bancorp parallel efforts, testing stablecoins and emphasizing structured oversight to mitigate depegging risks. - Coinbase's regulatory engagement spans FCA, SEC, and global

Altcoin Pain Nearing Its End — 5 Best Tokens to Trade Before the Breakout Hits

