BitGo, leader in digital asset services, has recently announced support for the Stacks blockchain, aimed at enhancing the functionality of Bitcoin.
This integration represents a further step forward towards the institutional adoption of Bitcoin native decentralized finance (DeFi), responding to the growing demand for safer and more profitable solutions.
Let’s see all the details below.
Bitcoin news: the integration of Stacks by BitGo
As anticipated, the growing institutional demand for Bitcoin has pushed BitGo to integrate Stacks, a layer-2 (L2) solution on the Bitcoin network.
This integration will allow the users of the platform to earn rewards in Bitcoin through a process called “stacking”.
Users who hold Stacks (STX) will be able to generate a native yield in BTC directly in their wallet, without the need to lend or expose their assets to additional risks.
Kyle Ellicott, leader degli investimenti nell’ecosistema di Stacks, ha sottolineato l’importanza di questa integrazione, affermando:
“Allowing institutions to earn a native Bitcoin yield with their STX is a huge step forward for Bitcoin. This is part of BitGo’s goal to put institutional capital to work with DeFi and staking. Making Bitcoin a productive asset is crucial for the long-term success of Bitcoin as a pillar for a decentralized economy.”
The new way to interact with DeFi protocols
The integration with Stacks offers a new way for Bitcoin holders to interact with DeFi protocols, a sector where many Bitcoiners have been reluctant to enter due to the risks associated with smart contracts and proof-of-stake (PoS) protocols.
Stacks, known as the Bitcoin smart contract layer, ranks fifth among Bitcoin layer-2 solutions, with over 95 million dollars in total value locked (TVL).
Equivalent therefore to a market share of 7.9% among all Bitcoin layer-2 solutions, according to DefiLlama.
As part of this new partnership, BitGo will also support the new Stacks token standard, sBTC, becoming a “Signer” on the network to contribute to block production and consensus.
This will happen after the full release of sBTC, a non-custodial asset backed by Bitcoin 1:1, designed to increase the programmability of the Bitcoin network.
As a signatory, BitGo will facilitate deposits and withdrawals of sBTC and the conversion of BTC into sBTC between L1 and L2 layers.
Other signatories of sBTC include Figment, Blockdaemon, Near Foundation, Luganodes, and Chorus One.
The objective of sBTC is to make it easier for developers to create DeFi applications on the Bitcoin network, opening new possibilities for decentralized finance and further improving the Bitcoin ecosystem.
Bitcoin reaches new highs above $66,000
Bitcoin (BTC) has surpassed the threshold of $66,000 in early Asian trading, continuing its bull trend after weeks of high volatility.
Currently, the price of Bitcoin has experienced a slight retracement, trading around $65,456.03, with a gain of 3.8% in the last 24 hours, according to data from Coingecko.
This surge follows a period of uncertainty in July, when BTC had dropped to $53,500 due to concerns related to the reimbursements of the defunct exchange Mt. Gox.
The recovery is part of a broader bull trend in the cryptocurrency market, with Ethereum recording an increase of 3.2%, reaching $3,470.
A key element that has fueled the recent positive momentum has been the complete liquidation of Bitcoin holdings by wallets linked to the German state of Saxony.
Eugene Cheung, VP and Head of Institutions at Bybit, explained that the end of BTC sales by the German government has brought short-term relief and stimulated renewed demand in the market.
Cheung has observed that a large part of the Bitcoin supply is still held at a cost lower than the current price, which supports the profitability of the market.
However, the looming distribution of Mt. Gox coins introduces an element of caution, even if many believe that this selling pressure has already been priced in.
Furthermore, the cryptocurrency market has found new optimism thanks to the pro-Bitcoin stance of the Republican presidential candidate Donald Trump.
In an unexpected move, Trump announced the crypto-friendly senator J.D. Vance as his running mate for vice president through a post on Truth Social.
This news quickly gained popularity on social media, further strengthening the positive outlook for the crypto community.