BitGo has integrated the Stacks blockchain in response to increasing institutional interest in Bitcoin, aiming to enhance its functionality.
BitGo, a digital asset service provider, has announced support for the Stacks blockchain to bolster Bitcoin capabilities, reflecting growing institutional adoption of Bitcoin–focused decentralized finance (DeFi).
The integration of Stacks’ Bitcoin layer–2 (L2) network allows BitGo users to earn Bitcoin rewards through a process known as “stacking.” This method enables Stacks (STX) holders to generate native BTC yield directly in their wallet, without the need to lend or expose their assets to additional risks.
Kyle Ellicott, the ecosystem investor lead at Stacks, emphasized the significance of this partnership in advancing Bitcoin’s institutional adoption:
“Enabling institutions to earn native Bitcoin yield with their STX marks a significant step forward for Bitcoin as BitGo aims to deploy institutional capital into DeFi and staking. Transforming Bitcoin into a productive asset is critical for its long-term success as the foundation for a decentralized economy.”
This integration introduces a novel approach for Bitcoin holders to engage with decentralized finance (DeFi) protocols, particularly appealing to those who have been cautious about participating due to risks associated with smart contracts and proof–of–stake (PoS) mechanisms.
Stacks is recognized as Bitcoin’s smart contract layer and currently ranks as the fifth-largest Bitcoin layer–2 solution, with over $95 million in total value locked (TVL) and a 7.9% market share among all Bitcoin layer–2 solutions, according to DefiLlama.
Summary Review: BitGo’s integration of the Stacks blockchain represents a significant response to the rising institutional demand for Bitcoin, particularly in the realm of decentralized finance (DeFi). This move underscores Bitcoin’s evolving role as a productive asset within the digital economy, offering holders new avenues to earn native BTC rewards through innovative stacking mechanisms. The partnership highlights Stacks‘ position as Bitcoin’s smart contract layer and its growing influence as a major player in Bitcoin’s layer–2 ecosystem. As institutions increasingly explore DeFi opportunities, initiatives like BitGo’s integration with Stacks are pivotal in expanding the utility and accessibility of Bitcoin across global financial markets.
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