Stacks

sBTC

DeFi

Bitcoin

<a href="https://www.bitgo.com/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">BitGo</a>, a digital asset service provider, has introduced support for the Stacks blockchain, enhancing Bitcoin’s functionality and marking a significant step in institutional adoption of Bitcoin-native decentralized finance (DeFi).
With the integration of the Bitcoin layer-2 (L2) network, Stacks, BitGo users can now earn Bitcoin rewards through “stacking.”
This process allows STX holders to generate native BTC yield directly in their wallets without lending or exposing the assets to additional risks.
Kyle Ellicott, the ecosystem investor lead at Stacks, commented on the partnership: “Allowing institutions to earn native Bitcoin yield with their STX is a huge step for Bitcoin as part of Bitgo’s goal to put institutional capital to work with DeFi and staking.
Making Bitcoin a productive asset is crucial for Bitcoin to succeed long term as rails for a decentralized economy.”
This collaboration offers Bitcoin holders a new way to engage with DeFi protocols, especially those wary of the risks associated with smart contracts and proof-of-stake protocols.
Stacks is known as Bitcoin’s smart contract layer and is the fifth-largest Bitcoin layer-2 solution, with over $95 million in total value locked, representing a 7.9% market share among Bitcoin layer-2 solutions, according to DefiLlama.
As part of this partnership, BitGo will support the new Stacks token standard, sBTC, and become a “Signer” on the network.
This role involves contributing to block production and consensus after the full release of sBTC.
This non-custodial, 1:1 Bitcoin-backed asset aims to enhance the programmability of Bitcoin.
BitGo will facilitate deposits and withdrawals for sBTC and the conversion of BTC to sBTC across layers.
READ MORE: <a href="https://www.cryptointelligence.co.uk/nigerian-stakeholders-advocate-sec-to-classify-bitcoin-and-ether-as-commodities-for-regulatory-clarity/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Nigerian Stakeholders Advocate SEC to Classify Bitcoin and Ether as Commodities for Regulatory Clarity</a>
Other sBTC signers include Figment, Blockdaemon, Near Foundation, Luganodes, and Chorus One. The sBTC standard is designed to simplify the development of DeFi applications on the Bitcoin network.
Stacks is preparing to activate its Nakamoto Release, which will pave the way for sBTC and 100% Bitcoin finality. Initiated on April 22, the activation is expected on August 28, according to Stacks’ roadmap.
Ellicott emphasized the significance of this release: “Stacks will inherit 100% of Bitcoin’s security budget, making transactions as irreversible as Bitcoin and enabling sBTC to facilitate decentralized BTC movement into the L2.
This release will begin another renaissance of new Bitcoin builders, technical upgrades, and growth in user interest, providing a promising spotlight for the future of Bitcoin DeFi.”
Bitcoin DeFi is expanding the crypto space with innovative products like Hermetica’s Bitcoin-based synthetic dollar, USDh, which debuted in June with a 25% annual percentage yield, derived from futures funding rates.
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BitGo Integrates Stacks Blockchain, Paving the Way for Bitcoin-Native DeFi Expansion

Crypto Intelligence

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