The following is a guest post and opinion of Vitaliy Shtyrkin, Chief Product Officer at B2BINPAY.

Staking has quickly become crypto’s “poster child” for easy rewards. According to on-chain data, over 35 million ETH has been staked on Ethereum alone. For many newcomers, it feels like a no-brainer: just lock up some tokens, walk away, and watch your wallet grow. No charts, no stress, no trading — all the promise of passive income without the sleepless nights.

However, staking may look like a shortcut to crypto profits, but under the hood, it’s a lot less passive than it seems. Amid market volatility, validator penalties, security risks, and regulatory crackdowns, those steady-looking returns can come with caveats.

And yet, that doesn’t mean staking should be rejected — far from it. It’s a fact that staking is becoming one of the most dynamic and misunderstood pillars of Web3. Whether you’re just stepping into the space or already reaping the benefits of staking, it’s worth asking: is it really the easiest way to earn in crypto, or is it a more complex system than it appears? Let’s dig deeper.

The Allure of Staking as a Low-Risk Crypto Entry Point

Staking is often branded as the low-risk, low-effort entry point into the crypto world. It’s even compared to a savings account: park your assets, earn interest back, and let the protocol do the work. The familiarity of that comparison makes it feel safe, especially for those coming from traditional finance.

Yes, at first glance, the concept is simple: you deposit tokens into a blockchain network and, in return, receive rewards for supporting its operations. You’re not trading. You’re not speculating. You’re helping secure the network while earning passive income in the process.

Crypto platforms, in turn, play into that appeal with various perks, such as beginner-friendly interfaces and automated staking options. A few clicks, some APY numbers, and you’re in. No need to master sophisticated concepts of tokenomics or track DeFi trends. Just stake and relax — or so the story goes.

So, for someone new to crypto, it’s hard not to be drawn by such an enticing idea — especially when friends or influencers casually mention how they’re making money “just by staking.” Compared to the chaos of NFTs, volatile trading pairs, and ever-changing protocols, staking feels like a safe harbor in a storm.

But what makes staking accessible is also what makes it misleading. Because under the surface, the risks are still present — they just look a little different.

Risks You Can’t See — and How to Stay Ahead of Them

At first, not all staking risks are obvious. While price volatility is the most talked-about threat, it’s not the only one. In fact, your staking setup is tested by what happens behind the scenes — and how prepared you are for it.

Take slashing, for example. If a validator behaves incorrectly or goes offline, the network may penalize both the validator and the user staking with it. That could mean losing a small percentage of your stake or, depending on the protocol, something much larger. Yes, it’s a harsh mechanism, but it helps keep networks honest.

Also, platforms can be just as fragile. If you’re staking through a third-party service, your rewards and your assets rely on someone else’s infrastructure and security. A sharp reminder of this risk came with the Bedrock exploit, where a vulnerability in a synthetic Bitcoin token led to losses of over $2 million. Flashy interfaces don’t guarantee safe custody.

Of course, regulation plays its part in the staking picture, too. Staking-as-a-service is drawing attention from global regulators, especially in the U.S. and EU. Platforms can be geo-blocked or shut down with little warning, leaving users locked out of their funds entirely.

Does all of this mean that staking should be avoided? Not at all — it means you need to treat it with the same seriousness as any financial decision. Know your validator. Focus on the lock-up rules. Don’t ignore platform terms. Once you understand how staking works, you can start thinking more broadly about actual utility.

Utility Over Yield

While most staking models center around earning yield, some take a different approach — one that’s less about passivity and more about utility. A good example is staking on the Tron network.

Instead of simply locking up TRX for rewards, users can stake to gain direct access to Bandwidth and Energy. These are two resources needed to process transactions and interact with smart contracts on the Tron blockchain. They refresh every 24 hours and, if used wisely, can eliminate transaction fees altogether. That turns staking into a way to reduce costs rather than just collect payouts.

Sure, the passive APY from TRX staking seems modest — often under 10% annually. But the real return comes from usage. For active users, those fee savings can add up quickly, in some cases equating to over 100% value annually in saved costs. It turns staking into a real-world tool, not just a reward mechanism.

Looking ahead, that distinction will become more important — especially given how fast the crypto ecosystem progresses. Staking shouldn’t be treated as a passive income fantasy or a high-risk gamble. It’s becoming clear that staking can be a strategy — a real way to participate in a network, secure it, and get real utility in return.

Mentioned in this article

We are pleased to announce the launch of Bitcoin (BTC) through a new integration with Babylon, Bitcoin-Native’s staking protocol. This integration allows clients to earn passive rewards for BTC without bridges, wraps or lending.

Starting today, clients can choose to wager BTC directly from Kraken. Their BTC is delegated through Babylon to ensure a stake (POS) network of certification. Bitcoin rewards with piles are paid in Babylonian native token, $baby.

The client holds full ownership of BTC and will not leave the Bitcoin blockchain. The staking mechanism is dominated by smart contracts, allowing users and third parties to see how rewards are handled. The BTC staking protocol also includes cryptographic protection measures that block and punish malicious behavior. Clients may not bet at any time for an unrelated period of seven days until the funds are returned.

This launch marks a significant expansion of our growing staking suites, further strengthening our leadership in product innovation. We were one of the first crypto exchanges to introduce custody rights in 2019, allowing millions of users to earn rewards through the acquisition platform.

Kraken Global Head of Consumer Mark Greenberg: “A significant amount of Bitcoin is currently sitting idle in exchange, representing the missed opportunity costs for clients and the opportunity of a wider ecosystem.

BTC staking products are available today on all platform interfaces, including Kraken and Kraken Pro.

Hardening government bond yields, especially on U.S. treasury notes, have traditionally been viewed as a headwind for bitcoin (BTC) and other risk assets.

However, recent persistent resilience in treasury yields suggests a different story — one driven by factors that could be bullish for bitcoin, according to analysts.

The U.S. data released Tuesday showed the consumer price index (CPI) rose 0.2% month-on-month for both headline and core in April, below the 0.3% readings expected. That resulted in a headline year-on-year inflation reading of 2.3%, the lowest since February 2021.

Still, prices for the 10-year treasury yield, which is influenced by inflation, dropped, pushing the yield higher to 4.5%, the highest since April 11, according to data source TradingView.

The so-called benchmark yield is up 30 basis points in May alone and the 30-year yield has increased to 4.94%, sitting near the highest levels of the last 18 years.

This has been the theme of late: Yields remain elevated despite all the news about tariff pause, the U.S.-China trade deal and slower inflation. (The 10-year yield surged from 3.8% to 4.6% early last month as trade tensions saw investors sell U.S. assets)

The uptick in the so-called risk-free rate usually sparks fears of rotation of money out of stocks and other riskier investments such as crypto and into bonds.

The latest yield surge, however, stems from expectations for continued fiscal expansion during President Donald Trump’s tenure, according to Spencer Hakimian, founder of Tolou Capital Management.

“Bonds down on a weak CPI day is telling [of] fiscal expansion like crazy,” Hakimian said on X. “Everyone plays to win the midterm. Debt and deficits be damned. It’s great for Bitcoin, Gold, and Stocks. It’s terrible for Bonds.”

Hakimian explained that Trump’s tax plan would immediately add another $2.5 trillion to the fiscal deficit. In other words, the fiscal policy under Trump will likely be just as expansionary as under Biden, acting as a tailwind for risk assets, including bitcoin.

The details of the tax cut plan reported by Bloomberg early this week proposed $4 trillion in tax cuts and about $1.5 trillion in spending cuts, amounting to a fiscal expansion of $2.5 trillion.

Arif Husain, head of global fixed income and chief investment officer of the fixed income division at T. Rowe Price, noted that fiscal expansion will soon become the overriding focus for markets.

“Fiscal expansion may be growth supportive, but most importantly, it would likely put even more pressure on the treasury market. I am now even more convinced that the 10‑year U.S. treasury yield will reach 6% in the next 12–18 months,” Husain said in a blog post.

Sovereign risk

Per Pseudonymous observer EndGame Macro, the persistent elevated Treasury yields represent fiscal dominance, an idea first discussed by economist Russel Napier a couple of years ago and Maelstrom’s CIO and co-founder, Arthur Hayes, last year, and repricing of U.S. sovereign risk.

“When the bond market demands higher yields even as inflation falls, it’s not about the inflation cycle it’s about the sustainability of U.S. debt issuance itself,” EndGame Macro said on X.

The observer explained that higher yields create a self-reinforcing spiral of higher debt servicing costs, which call for more debt issuance (more bond supply) and even higher rates. All this ends up raising the risk of a sovereign debt crisis.

BTC, widely seen as an anti-establishment asset and an alternative investment vehicle, could gain more value in this scenario.

Moreover, as yields rise, the Fed and the U.S. government could implement yield curve control, or active buying of bonds to cap the 10-year yield from rising beyond a certain level, let’s assume 5%.

The Fed, therefore, is committed to buy more bonds every time the yield threatens to rise beyond 5%, which inadvertently boosts liquidity in the financial system, galvanizing demand for assets like bitcoin, gold and stocks.

April 4th, 2025 – Singapore, Singapore

Yala, the Bitcoin-native liquidity layer enabling cross-ecosystem financial access, today announced the upcoming launch of Yala RealYield, a curated marketplace for real-world asset (RWA) yield opportunities powered by Bitcoin.

The new platform will enable BTC holders to earn regulated, risk-adjusted yields by allocating capital into tokenized financial products, including U.S. Treasury bills, private credit, corporate bonds, and real estate-backed assets.

Yala RealYield is designed as a unified access point to all of Yala’s RWA-related integrations. Rather than operating as a standalone product, it consolidates partnerships and investment opportunities into a structured platform where users can explore, compare, and combine diverse RWA yield sources, each offering distinct risk profiles, durations, and APYs.

By enabling global, 24/7 access to high-quality, compliant RWA opportunities, Yala RealYield democratizes investment strategies previously limited to institutional investors and high-net-worth individuals.

“Real-world assets are rapidly becoming the next frontier in blockchain finance. With RealYield, we’re offering Bitcoin holders a reliable, transparent way to earn real returns without leaving the decentralized economy,” said Kaitai Chang, COO at Yala. “This is a foundational step toward integrating BTC with the broader financial system.”

Key Features of Yala RealYield:

• Curated RWA Marketplace: Investors can access a wide selection of tokenized real-world yield opportunities, including sovereign debt, real estate, and private credit—all with transparent terms regarding risk, maturity, and return.
• Customizable Yield Strategies: Users can mix and match products to create bespoke portfolios tailored to individual preferences.
• Seamless Bitcoin Integration: All investments begin with BTC, ensuring on-chain transparency, verifiability, and security.
• Compliance-First Design: Robust legal and regulatory reviews to ensure real-world assets can be securely and legally onboarded.
• Unified Experience: Yala offers a single dashboard for minting, trading, and managing RWA and DeFi positions—eliminating the need for fragmented platforms.
• Institutional-Grade Access: Multi-signature custody, on-chain governance, and permissioned access provide a secure foundation for institutional participation.
• Incentivized Participation: Yield farming and staking mechanisms will be introduced to drive engagement across both retail and institutional segments.

Personalized Yield Through a Marketplace Model

Yala RealYield operates as a marketplace, enabling users to browse and select from a range of yield products across categories such as:

• Risk Profile – From low-risk instruments like U.S. Treasuries to higher-yield private credit vehicles.
• Time Horizon – Options range from short-duration liquidity to long-term fixed-income strategies.
• Target Returns – Each product includes APY benchmarks to help users align returns with personal investment objectives.

Yala will also introduce the RWA Vault Allocation Framework, a model that packages diversified real-world assets into unified yield vaults, each with defined allocation weights. This mirrors traditional asset allocation strategies but with the added composability and efficiency of Web3 infrastructure.

Strategic Vision and Market Opportunity

Yala RealYield addresses a long-standing gap in crypto: unlocking Bitcoin’s immense liquidity for productive, low-risk yield generation. The launch comes as institutional interest in tokenized real-world assets accelerates, with the total addressable market for RWAs projected to reach trillions of dollars in the coming years.

By combining compliance-first infrastructure, seamless BTC access, and a growing roster of RWA partnerships, Yala is well-positioned to become the leading yield gateway for Bitcoin in traditional financial markets.

“Bitcoin remains the most underutilized source of liquidity in the global financial system,” said Kaitai. “RealYield allows us to connect that capital to compliant, income-generating products, building a future where BTC earns real-world returns.”

Looking Ahead

Yala plans to expand the RealYield marketplace over the coming months through additional integrations, refined yield packaging, and improved tooling for developers and institutional users. Long-term, Yala will support the use of RWA-backed positions as collateral for stablecoin minting, creating deeper synergies between DeFi and traditional finance.

About Yala

Yala is building a liquidity layer to unlock Bitcoin’s untapped yield across DeFi and RWAs. Users can deposit BTC and access seamless liquidity, enabling efficient capital movement and yield opportunities across ecosystems, chains, and protocols.

To learn more, users can visit www.yala.org or follow Yala on X at @yalaorg.

Contact

Yala
media@yala.org