Merlin Chain Launches BTC Staking with Up to 21% Yield, Ushering Bitcoin into PoS Era

Merlin Chain, a prominent Bitcoin Layer2 network, has officially launched its BTC staking feature, enabling users to engage in the Proof-of-Stake (PoS) mechanism using Bitcoin. This strategic development offers an annualized yield reaching up to 21%, with an initial staking pool capped at 50 BTC. Reward distributions are scheduled for early October 2025, with plans for incremental capacity increases aligned with market demand. This milestone signifies Merlin Chain’s formal transition into the Bitcoin PoS ecosystem, allowing participants to secure the network and generate returns without unlocking their BTC assets.

Jeff, the founder of Merlin Chain, emphasized the project’s commitment to advancing the standardization of BTC staking protocols and establishing a robust cross-chain liquidity infrastructure. The initiative aims to enhance BTC’s composability and revenue potential across multiple blockchain environments. Merlin Chain’s Layer2 asset, M-BTC, is already integrated with over 20 major public chains including Ethereum, Solana, and Sui, supporting a substantial TVL exceeding $4 billion.

Additionally, Merlin Chain has forged partnerships with leading BTCFi platforms such as Babylon and Zerolend to expand use cases encompassing staking, lending, and re-staking. The network also backs key BTCFi innovators like Solv Protocol and Avalon Labs, reinforcing its position as a pivotal player in the evolving Bitcoin decentralized finance landscape.