Key Takeaways:
- BitGo's Lightning Earn lets institutions earn yield from Bitcoin routing fees
- The product keeps client Bitcoin in regulated custody while generating returns
- Tokenized real-world assets market reached $31.8 billion, RWA.xyz data shows
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BitGo launches Lightning Earn as tokenized assets hit $31.8 billion
BitGo launched Lightning Earn on June 11, a product enabling institutional clients to earn yield from Bitcoin Lightning Network routing fees while maintaining regulated custody.
"Lightning Earn bridges the gap between passive Bitcoin holdings and the Lightning Network's growing payment infrastructure," a BitGo spokesperson said. The product allows institutions to deploy idle Bitcoin into routing nodes without transferring assets off BitGo's qualified custody platform.
The tokenized asset market was valued at $31.8 billion as of June 12, led by tokenized US Treasury products with around $14.9 billion in assets, according to RWA.xyz. Commodities accounted for roughly $4.7 billion of tokenized assets, followed by asset-backed credit at $2.2 billion and tokenized stocks at approximately $1.5 billion.
The product could drive significant institutional Bitcoin inflows by providing a previously unavailable yield-generating use case for passive BTC holdings. It strengthens the Lightning Network's liquidity and routing capacity while positioning BitGo as a leader in regulated Bitcoin custody services, potentially pressuring other custodians to offer similar products.
Crypto companies have increasingly expanded the use of tokenized assets beyond simple buy-and-hold investment products. In April, OKX integrated BlackRock's BUIDL tokenized Treasury fund into its collateral framework, allowing eligible institutional clients to use the yield-bearing asset as trading margin. Last week, Archax launched a system on Hedera that enables real-time interest payments for tokenized securities, allowing cash flows to follow assets as they change hands onchain. The trend has also attracted major Wall Street firms. In May, JPMorgan filed to launch a tokenized money market fund on Ethereum.
Bybit also recently launched tokenized products, saying users can subscribe using USDC without paying subscription, redemption or onchain transaction fees, though the products are not principal protected and returns are not guaranteed.
This article is for informational purposes only and does not constitute investment advice.
