🕒 Posted on: 6/5/2025 2:15:22 PM UTC

Bitcoin Layer 1 Core Foundation Expands Validators with BitGo and KODA Amid $500M Staked BTC Surge

The Core Foundation, a key player in Bitcoin’s Layer 1 ecosystem, has announced the addition of BitGo and KODA as new validators. This strategic move comes as the network surpasses $500 million in staked Bitcoin (BTC), signaling growing institutional confidence in Bitcoin-native decentralized finance (DeFi).

This expansion strengthens the security and decentralization of the Core blockchain while fostering greater institutional participation. Below, we explore the implications of this development, the role of new validators, and how it aligns with broader trends in Bitcoin’s evolving infrastructure.

Core Foundation Strengthens Network Security with BitGo and KODA

The Core Foundation, which supports Bitcoin’s Layer 1 infrastructure, has onboarded two major institutional players—BitGo, a leading digital asset custodian, and KODA, a regulated digital asset custodian—as validators.

Validators play a crucial role in maintaining blockchain integrity by verifying transactions and ensuring consensus. The inclusion of BitGo and KODA enhances the network’s security while providing institutional-grade validation services.

Why This Move Matters

Institutional Adoption: BitGo’s involvement signals growing trust from traditional finance in Bitcoin-native DeFi.
Regulatory Compliance: KODA brings regulated custody solutions, aligning with increasing scrutiny in crypto markets.
Network Decentralization: More validators reduce reliance on single entities, improving resilience against attacks.

With over $500 million in staked BTC, Core’s ecosystem is attracting significant capital, reinforcing Bitcoin’s utility beyond just a store of value.

BitGo’s Role in Bitcoin’s Institutional Growth

BitGo, one of the earliest institutional crypto custodians, holds a substantial share of the digital asset custody market. Its participation as a validator on Core’s network provides several advantages:

Security Expertise: BitGo’s experience in securing billions in digital assets adds robustness to Core’s validation process.
Enterprise Integration: Institutions using BitGo custody can now seamlessly interact with Core’s staking mechanisms.
Trust Factor: BitGo’s reputation may encourage more institutions to stake BTC on Core.

This move follows broader industry trends where institutional players increasingly engage with Bitcoin beyond simple holding strategies.

KODA Brings Regulated Custody Solutions to Core

KODA, another newly added validator, specializes in compliant digital asset custody. Its inclusion aligns with regulatory shifts such as:

MiCA (Markets in Crypto-Assets Regulation): Europe’s upcoming framework demands stricter compliance for crypto firms.
FCA (Financial Conduct Authority) Guidelines: UK regulators are tightening oversight on crypto custodians.

By integrating KODA, Core ensures its validator set meets emerging regulatory standards—a critical factor for long-term institutional adoption.

$500M Staked BTC Reflects Growing Demand for Bitcoin DeFi

The surge in staked BTC highlights rising interest in earning yield on Bitcoin without relying on wrapped tokens or synthetic derivatives. Key takeaways include:

Native Yield Opportunities: Users can stake BTC directly on Core without bridging to other chains.
Institutional Participation: Large-scale staking suggests hedge funds and asset managers are exploring Bitcoin-native DeFi.
Competition with Ethereum: While Ethereum dominates DeFi, Bitcoin Layer 2 solutions like Core are gaining traction.

This trend mirrors developments like Coinbase launching wrapped DOGE (cbDOGE) and XRP (cbXRP) on Base Network—showing demand for cross-chain asset utility while preserving security.

Broader Trends: Regulatory Shifts and Institutional Moves

The crypto industry is witnessing a push toward compliance, as seen with:

Zebec Acquires Gatenox for Compliance Tech

Zebec recently acquired compliance firm Gatenox ahead of MiCA regulations, emphasizing protocol-level compliance—a parallel to Core’s validator strategy.

Meanwhile’s Bitcoin Life Insurance Audit

Bermuda-based Meanwhile published its first audit, showcasing how Bitcoin is being integrated into traditional financial products like life insurance.

These moves indicate that both DeFi and TradFi sectors are preparing for stricter regulations while expanding Bitcoin’s use cases.

Challenges Ahead: Illicit Markets and Market Volatility

Despite positive developments, challenges persist:

Resurgence of Banned Crypto Marketplaces

TRM Labs reported that banned platforms like Huione Guarantee and Xinbi Guarantee have resurfaced on Telegram under new names—highlighting ongoing risks in unregulated crypto trading.

XRP Faces $2.2B Escrow Unlock Pressure

XRP's price faces uncertainty due to a massive escrow unlock, testing key support levels at $2.14—a reminder of how supply dynamics impact crypto markets.

While these issues exist separately from Core’s growth, they underscore the importance of robust compliance frameworks in sustaining long-term adoption.

Conclusion: A Stronger Bitcoin Ecosystem Emerges

The addition of BitGo and KODA as validators marks a milestone for the Core Foundation, reinforcing its position as a leading Bitcoin Layer 1 solution. With over $500 million in staked BTC, institutional interest is clearly rising—driven by security enhancements, regulatory alignment, and yield opportunities native to Bitcoin itself.

As the industry navigates regulatory shifts and illicit activity risks, projects like Core demonstrate how Bitcoin can evolve beyond peer-to-peer cash into a foundation for decentralized finance—without compromising security or compliance standards.