Bitget has upgraded its Bitcoin-backed BGBTC asset with daily BTC-denominated rewards, cross-chain transfers through Chainlink CCIP, and independent oversight from Gauntlet.
Summary
- BGBTC holders will receive daily rewards denominated in Bitcoin following the upgrade.
- Chainlink CCIP will serve as BGBTC’s canonical cross-chain infrastructure.
- Gauntlet will independently oversee the asset’s underlying yield strategies.
- BGBTC remains backed by Bitcoin at a 1:1 ratio, according to Bitget.
Bitget adds daily Bitcoin rewards to BGBTC
Bitget said the upgraded BGBTC will distribute daily rewards denominated in BTC to token holders. The asset is designed to maintain a 1:1 peg with Bitcoin while allowing users to earn yield without selling their underlying exposure.
The exchange is positioning BGBTC as an alternative to holding idle Bitcoin or moving BTC into separate yield strategies. Those strategies can require users to transfer assets between platforms, manage additional protocols, or accept reduced liquidity.
BGBTC already has several uses within the Bitget ecosystem. Holders can use the asset as futures margin, lending collateral or for participation in the exchange’s Launchpool and PoolX products.
The upgrade also introduces support for large-volume and faster redemptions, according to Bitget. The company said it has added institutional-grade risk controls and greater transparency, although specific reward rates and redemption thresholds were not provided in the announcement.
Rewards remain tied to the performance and sustainability of the underlying yield strategies. A Bitcoin-backed token can also carry platform, custody, smart-contract and liquidity risks that differ from holding BTC directly.
Chainlink CCIP supports cross-chain BGBTC transfers
Bitget selected Chainlink’s Cross-Chain Interoperability Protocol as the canonical infrastructure for distributing BGBTC across multiple blockchain networks.
CCIP provides the messaging layer needed to move the asset between supported chains. The integration could allow holders to access decentralized applications and financial services outside Bitget’s centralized platform while retaining exposure to the Bitcoin-backed token.
Bitget already uses Chainlink Proof of Reserve to verify the assets supporting BGBTC. Proof of Reserve provides on-chain data intended to help users assess whether sufficient collateral exists behind the issued supply.
Combining Proof of Reserve with CCIP addresses two separate functions. The reserve system focuses on collateral verification, while CCIP handles communication and token transfers across blockchains.
Bitget did not identify every blockchain that will initially support BGBTC through CCIP or provide a schedule for additional network deployments.
Gauntlet will oversee BGBTC yield strategies
Gauntlet has been appointed as BGBTC’s independent curator and will supervise the strategies used to generate rewards for holders.
The quantitative risk-management firm will monitor the underlying portfolio, assess risks and help determine how capital is deployed. Bitget said the framework is intended to support the long-term sustainability of BGBTC’s yield rather than relying on an unmanaged set of strategies.
Independent curation adds another layer of oversight, but it does not eliminate losses. Reward levels may change based on market conditions, available strategies, and the performance of the assets or protocols involved.
Bitget is also working with infrastructure providers, including Chainlink and Morph, as it seeks to connect centralized and decentralized financial services through a broader Bitcoin yield network.
The company cited USDGO Holderyield as another part of its effort to let users earn returns from assets that would otherwise remain idle.
What the upgrade means for Bitcoin holders
BGBTC combines Bitcoin exposure, daily rewards and cross-chain utility in a single token. Users can potentially earn BTC-denominated returns while deploying the asset as collateral, margin or capital in supported decentralized applications.
For US investors, access to BGBTC and related Bitget services may depend on geographic and product restrictions. Users should confirm whether the exchange, token, and associated yield products are available in their jurisdiction before transferring funds.
Yield paid in BTC may also create tax-reporting obligations for US holders, depending on how the rewards are classified and when users gain control of them. Bitget did not announce any US-specific rollout or regulatory approval alongside the upgrade.
Future adoption will depend on the reward rate, redemption performance, supported networks, and transparency around the underlying strategies. Bitget has not yet disclosed a fixed annual yield or a complete cross-chain deployment timeline.