Rootstock Unlocks $260 Billion in Idle Bitcoin with Bold New Tools
Bitcoin’s untapped potential is drawing fresh attention as Rootstock rolls out new ways to put idle holdings to work. The platform’s latest moves include tokenised credit, institutional vaults, and Bitcoin-backed loans for miners. Industry figures like Alex Green argue that better composability could soon make Bitcoin a stronger rival to traditional assets like property or fine art. Rootstock is pushing to unlock the $260 billion in Bitcoin currently sitting unused. Holders of the asset often pay custody fees of 10 to 50 basis points annually without earning any return. The platform’s first institutional product—a Bitcoin-collateralised loan—helps miners cover electricity costs while keeping their reserves intact.
In Brazil, Mercado Bitcoin has already placed $20 million of tokenised private credit on Rootstock, with plans to reach $100 million by April. This gives Bitcoin investors exposure to local corporate debt and receivables. Meanwhile, partnerships in Japan with Animoca Brands aim to introduce corporate treasury tools, tapping into a market where 80% of investors plan crypto allocations within a year. Infrastructure is also expanding. Firms like Midas and Hyperithm are building institutional-grade vaults on Rootstock, with custody managed by providers such as Fireblocks and Fordefi. Green envisions a five-year shift toward Bitcoin-backed mortgages and yield-generating retail products. Yet he warns that decentralised finance (DeFi) must improve its incident communication—or risk losing capital to centralised alternatives. Despite concerns over concentration in a few Bitcoin ETFs and the dominance of entities like Strategy, Green believes diversification is accelerating. He argues that composable Bitcoin, through networks like Rootstock, could eventually outperform illiquid assets by offering liquidity, yield, and real-world utility.
Rootstock’s push to activate idle Bitcoin includes loans, tokenised credit, and partnerships across Brazil and Japan. The platform’s institutional tools and custody solutions aim to make holding Bitcoin more productive. If successful, these efforts could reshape how investors treat the asset—moving it from a static store of value to a dynamic financial tool.
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