Custody • October 3, 2019, 9:50AM EDT

BitGo enters into staking space, offering up to 13% annual returns

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The Block

Cryptocurrency custodian BitGo has ventured into the staking space, supporting two tokens initially - Dash (DASH) and Algorand (ALGO).

The new service means BitGo’s clients can now stake the two tokens and earn passive income in the range of 7-13% p.a., according to a press release shared with The Block on Thursday.

“Staking provides our clients with returns on their investments without ever moving their assets out of custody,” said Ben Chan, chief technology officer of BitGo.

The firm has also acquired staking infrastructure startup Hedge. BitGo said it has integrated Hedge’s automated secure deployments, hardware security modules (HSMs) and secure cryptographic enclaves, to its staking platform.

The acquisition will help BitGo deliver “an automated, end-to-end” staking service, said Chan.

Last month, cryptocurrency exchange Binance also launched its staking platform with the support of eight coins, including ALGO.  It recently added support for TRON token as well for the platform.