DeFi Technologies, a Canadian fintech company, launched the world's first and only yield-bearing Bitcoin exchange-traded product (ETP) in Germany through its subsidiary Valour. The offering provides investors with exposure to Bitcoin with a 5.65% annualized yield on the Frankfurt Stock Exchange – the world's third oldest and twelfth largest stock exchange by market cap.
Previously, the product – referred to as Valour Bitcoin Staking (BTC) EUR ETP by the company – was introduced to the Nordic Growth Market (a regulated exchange for the Nordic countries, i.e., in Sweden, Finland, Denmark, and Norway) on May 10, 2024.
BTCfi enabled by the Core blockchain
The ETP has been developed in partnership by Valour Inc. and the Core Foundation, a DAO dedicated to the development of the Core blockchain network and decentralized applications secured by Bitcoin. The Core Chain, which powers Valour's Bitcoin Staking ETP, is a Bitcoin-powered layer-one blockchain designed for EVM-compatible smart contracts.
It combines the robust security of Bitcoin with Ethereum's adaptability through a novel consensus mechanism called Satoshi Plus. Notably, approximately 50% of Bitcoin mining hash power contributes to Core's security, unlocking utility and rewards for Bitcoin users. The Core technology is positioned as the most Bitcoin-aligned EVM blockchain, supporting BTCfi – DeFi services enabling Bitcoin users to engage in various financial operations with BTC as collateral.
How does Bitcoin staking work?
Valour's Bitcoin ETP yields profit for holders by delegating cryptocurrency to the Core Chain-based validator through native Bitcoin staking. Staked Bitcoins earn CORE tokens – staking rewards which are then reinvested into the ETP. The Satoshi Plus consensus mechanism allows Bitcoin miners to delegate their PoW to Core validators without impacting their future Bitcoin rewards.
Security remains uncompromised throughout the process, with the custodial control maintained while the yield is generated. Bitcoins are staked through a Bitcoin-native stake transaction, which includes a lockup period, preventing transfers or slashing, and staking details, including the Core Chain validator and the Core reward address. Once the lockup ends, the owner retains sole authority to transfer the Bitcoins.
What is DeFi Technologies?
- Valour Bitcoin Staking (BTC) EUR ETP embodies our commitment to innovation in the digital asset space, providing investors with a seamless and secure way to participate in Bitcoin's growth potential while offering a novel investment avenue for engaging with the world's premier cryptocurrency – said Marco A. Infuso, chief sales officer of Valour, in a press release.
DeFi Technologies, Valour's parent company, has been pioneering the convergence of traditional capital markets with DeFi. The fintech provides institutional-grade exposure to digital assets through ETPs, strategic ventures, and web3 infrastructure.
