Rootstock Labs launches institutional investor team…"Solution to be launched within the year"

Rootstock Labs (RootstockLabs), which developed Rootstock, the first Bitcoin (BTC) layer-2, announced on the 16th that it has launched an institutional investor-dedicated team, 'Rootstock Institutional.'

Rootstock Institutional is a team that supports the cryptocurrency investments of corporations and professional investors. Specifically, it helps investors enhance on-chain yield strategies by leveraging Bitcoin-based decentralized finance (DeFi).

Rootstock Labs established the dedicated team on the judgment that most institutional investors are not generating meaningful returns from cryptocurrency investments. A Rootstock Labs official said, "Currently, institutions hold about 2.6 million bitcoins through exchange-traded funds (ETFs) and the like, but most are not generating profits due to high custody fees," and added, "Rootstock Institutional was established to solve this problem."

Rootstock Institutional will operate in two major phases. First, Rootstock Labs plans to launch, within the year, an on-chain solution that supports liquidity and collateral management by utilizing Rootstock's existing DeFi protocols such as LayerBank, Midas, and Solve.

In the second phase, dollar- and Bitcoin-based vault strategies will be introduced. This is to strengthen regulatory compliance of existing financial infrastructure. A vault is an on-chain, smart contract-based DeFi solution designed to securely store and manage cryptocurrencies and to execute specific investment strategies.

Rootstock Labs plans to roll out six additional strategies next year, including real-world assets (RWA), liquidity mechanisms, and structured products. Richard Green, Executive Director of Rootstock International and Ecosystem, said, "The solution scheduled for release this December will include dollar-based strategies leveraging Rootstock's stablecoin infrastructure," and added, "In cooperation with qualified fund managers, on-chain DeFi strategies such as lending, borrowing, and liquidity provision will be combined with tokenized off-chain institutional-grade opportunities."