Core DAO Leads Push for Bitcoin as Yield-Generating Asset
Bitcoin's role as a passive store of value is rapidly transitioning toward becoming a yield-generating financial asset, according to Brendon Sedo, an initial contributor to Core Chain and head of Core Ventures.
"Institutions won't settle for simple holding," Sedo told Benzinga. "They're built on generating yield. ETFs are just the first step." The focus is now on developing Bitcoin as a productive asset that offers income without relying on custodians or sacrificing decentralization.
Core's Timelock Plus mechanism stands at the center of this transformation, allowing BTC holders to earn approximately 4-6% yield natively without wrapping their coins. This approach removes the need for custodians or bridges that typically introduce trust issues.
This development represents a significant shift in Bitcoin DeFi. Previously, decentralized finance for Bitcoin required wrapping BTC to work with Ethereum-compatible protocols, which added counterparty risks. Now, innovations like Core's native staking infrastructure enable DeFi directly on Bitcoin itself.
Core Ventures has invested over $1 million in 15 Bitcoin-native projects since early 2024. The portfolio includes BTC-backed stablecoins, yield protocols, decentralized bridges, and miner-aligned security systems. Projects like Solv Protocol, Colend, BitFlux, BIMA Labs, and Sats Terminal are gaining support from major investors including Coinbase Ventures and OKX Ventures.
With more than 6,000 BTC staked, $500 million in total value locked, and over 100,000 daily active users, Core has established itself as a foundation of Bitcoin's programmable ecosystem. According to Sedo, the goal is to connect traditional holding strategies with active capital deployment.
"For too long, those two worlds existed apart," Sedo said. "Now, we're transforming Bitcoin into infrastructure, capital that can be used, not just held."
This Bitcoin financial evolution mirrors other blockchain innovation trends, such as HydraDAO's recent breakthrough in medical research funding. The decentralized science organization raised 380,700 USDC for spinal fusion technology that restored mobility in rats with severed spines within five days post-surgery, demonstrating how crypto platforms increasingly support advancements beyond traditional finance.
