Enhancing Bitcoin’s Functionality: BitGo Integrates Stacks Layer 2 and Announces Support for sBTC
[New York, New York – July 17, 2024] BitGo, a leader in digital asset financial services, has launched support for the Stacks layer, enhancing Bitcoin functionality with integrated delegate and solo stacking capabilities. This initiative not only expands BitGo's ecosystem involvement but also offers clients a unique opportunity to earn Bitcoin (BTC) rewards. Through Stacking, BitGo users can now generate BTC rewards directly in their wallets, providing a secure and efficient way to grow their Bitcoin holdings without lending or additional risk. Additionally, BitGo now supports the Stacks token standard as well. Finally, as a key part of this integration, BitGo will serve as a 'Signer' on the network, contributing to block production and blockchain consensus. Upon the release of sBTC, a decentralized 1:1 Bitcoin-backed asset designed to boost Bitcoin's programmability, BitGo will join the Signer network, facilitating deposit and withdrawal transactions for this innovative asset.
Signers like BitGo play a crucial role in the decentralized network by enabling the conversion between BTC and sBTC across the Bitcoin L1 and L2 layers. To create sBTC, users deposit an equivalent amount of BTC into a Bitcoin blockchain script controlled by the Signer network. The Signers then mint sBTC and transfer it to the user's Stacks address. Conversely, to convert sBTC back to BTC, users initiate a peg-out transaction, which signers process by sending BTC to the user's Bitcoin address.
“BitGo is pleased to support Stacks in expanding their smart contract capabilities and decentralized applications for builders and institutions, alike,” says Daniel Du, Sr. Product Manager at BitGo. “We are proud to provide regulated qualified custody and stacking of STX, and we look forward to partnering with them in their future advancements.”
The Bitcoin layer ecosystem and surrounding builder community have recently exploded as the industry seeks to unleash the potential of the Bitcoin economy. Since December 2023, the total value locked (TVL) for the Bitcoin ecosystem has grown 7x to over $2.2B. As developers enter the ecosystem, they are looking for effective ways to build on the most proven, adopted, and valuable blockchain in the world. Bitcoin L2s and other scaling solutions offer a growing number of ways for developers to leverage the security, network effects, and sheer addressable market of Bitcoin ($.5T in largely latent capital), all without needing to change Bitcoin itself. BitGo’s participation as a Signer for the Stacks layer is another encouraging sign for the Bitcoin L2 category and another step forward for Bitcoin as a viable base layer for developers.
Meanwhile, investors and institutions have moved more deeply into the Bitcoin innovation space. Some investors have ramped up their allocation to Bitcoin-based projects through direct investments in teams like Xverse, Hermetica, Bitflow and others. Others like Outlier Ventures and Bitcoin Frontier Fund have established new accelerator programs exclusively focusing on teams building on Bitcoin. On the institutional side, new activity is driven by renewed action around Bitcoin ETFs. The market is poised for a fresh inflow of capital that will fuel a new era of Bitcoin builders. Builders will turn to the scalability of the Stacks layer for secure transactions and speed and Bitgo as a trusted custodian.
“BitGo's integration with the Stacks layer signals a major endorsement of Bitcoin Layer 2 solutions,” says Jonathan Sadlowe, General Partner at Gossamer Capital. “This move underscores the critical role that Bitcoin L2s, with Stacks leading among them, will play in expanding the Bitcoin ecosystem and driving future innovation.”
Beneficiaries of the rise of Bitcoin L2s will include Bitcoin holders who are currently left out of or abstain from DeFi for a variety of reasons, especially perceived security risks of Proof-of-Stake systems and less-proven L1s. If done properly, Bitcoin L2s will provide a more ‘Bitcoiner’ aligned set of DeFi protocols that are secured by Bitcoin itself.
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About BitGo
BitGo is the leading infrastructure provider of digital asset solutions, offering custody, wallets, staking, trading, financing and settlement out of regulated cold storage. Founded in 2013, BitGo is the first digital asset company to focus exclusively on serving institutional clients.
BitGo is dedicated to advancing a digital financial services economy that is borderless and accessible 24/7. With multiple Trust companies around the world, BitGo is the preferred security and operational backbone for more than 1,500 institutional clients in 50 countries, including many of the world’s top brands, cryptocurrency exchanges and platforms. BitGo also secures approximately 20% of all on-chain Bitcoin transactions by value and is the largest independent digital asset custodian. For more information, please visit www.bitgo.com.
About Stacks
Stacks is a Bitcoin L2 that enables smart contracts and decentralized applications to use Bitcoin as a secure base layer. In December 2022, the sBTC whitepaper was released along with plans for the 2024 Nakamoto Release which will bring faster speeds and transactions backed by 100% of BTC security to the Stacks Layer. The launch of sBTC will unlock Bitcoin as a fully programmable, productive asset for countless use cases. In the Stacks ecosystem, there are currently 30+ companies including a non-profit Stacks Foundation, a developer tooling company Hiro, Xverse, Trust Machines, Mechanism, Bitcoin L2 Labs, ALEX, Arkadiko etc. — it is a truly decentralized ecosystem.
Signers like BitGo play a crucial role in the decentralized network by enabling the conversion between BTC and sBTC across the Bitcoin L1 and L2 layers. To create sBTC, users deposit an equivalent amount of BTC into a Bitcoin blockchain script controlled by the Signer network. The Signers then mint sBTC and transfer it to the user's Stacks address. Conversely, to convert sBTC back to BTC, users initiate a peg-out transaction, which signers process by sending BTC to the user's Bitcoin address.
“BitGo is pleased to support Stacks in expanding their smart contract capabilities and decentralized applications for builders and institutions, alike,” says Daniel Du, Sr. Product Manager at BitGo. “We are proud to provide regulated qualified custody and stacking of STX, and we look forward to partnering with them in their future advancements.”
The Bitcoin layer ecosystem and surrounding builder community have recently exploded as the industry seeks to unleash the potential of the Bitcoin economy. Since December 2023, the total value locked (TVL) for the Bitcoin ecosystem has grown 7x to over $2.2B. As developers enter the ecosystem, they are looking for effective ways to build on the most proven, adopted, and valuable blockchain in the world. Bitcoin L2s and other scaling solutions offer a growing number of ways for developers to leverage the security, network effects, and sheer addressable market of Bitcoin ($.5T in largely latent capital), all without needing to change Bitcoin itself. BitGo’s participation as a Signer for the Stacks layer is another encouraging sign for the Bitcoin L2 category and another step forward for Bitcoin as a viable base layer for developers.
Meanwhile, investors and institutions have moved more deeply into the Bitcoin innovation space. Some investors have ramped up their allocation to Bitcoin-based projects through direct investments in teams like Xverse, Hermetica, Bitflow and others. Others like Outlier Ventures and Bitcoin Frontier Fund have established new accelerator programs exclusively focusing on teams building on Bitcoin. On the institutional side, new activity is driven by renewed action around Bitcoin ETFs. The market is poised for a fresh inflow of capital that will fuel a new era of Bitcoin builders. Builders will turn to the scalability of the Stacks layer for secure transactions and speed and Bitgo as a trusted custodian.
“BitGo's integration with the Stacks layer signals a major endorsement of Bitcoin Layer 2 solutions,” says Jonathan Sadlowe, General Partner at Gossamer Capital. “This move underscores the critical role that Bitcoin L2s, with Stacks leading among them, will play in expanding the Bitcoin ecosystem and driving future innovation.”
Beneficiaries of the rise of Bitcoin L2s will include Bitcoin holders who are currently left out of or abstain from DeFi for a variety of reasons, especially perceived security risks of Proof-of-Stake systems and less-proven L1s. If done properly, Bitcoin L2s will provide a more ‘Bitcoiner’ aligned set of DeFi protocols that are secured by Bitcoin itself.
—
About BitGo
BitGo is the leading infrastructure provider of digital asset solutions, offering custody, wallets, staking, trading, financing and settlement out of regulated cold storage. Founded in 2013, BitGo is the first digital asset company to focus exclusively on serving institutional clients.
BitGo is dedicated to advancing a digital financial services economy that is borderless and accessible 24/7. With multiple Trust companies around the world, BitGo is the preferred security and operational backbone for more than 1,500 institutional clients in 50 countries, including many of the world’s top brands, cryptocurrency exchanges and platforms. BitGo also secures approximately 20% of all on-chain Bitcoin transactions by value and is the largest independent digital asset custodian. For more information, please visit www.bitgo.com.
About Stacks
Stacks is a Bitcoin L2 that enables smart contracts and decentralized applications to use Bitcoin as a secure base layer. In December 2022, the sBTC whitepaper was released along with plans for the 2024 Nakamoto Release which will bring faster speeds and transactions backed by 100% of BTC security to the Stacks Layer. The launch of sBTC will unlock Bitcoin as a fully programmable, productive asset for countless use cases. In the Stacks ecosystem, there are currently 30+ companies including a non-profit Stacks Foundation, a developer tooling company Hiro, Xverse, Trust Machines, Mechanism, Bitcoin L2 Labs, ALEX, Arkadiko etc. — it is a truly decentralized ecosystem.