BitGo Enhances Bitcoin with Stacks Layer Support

BitGo, a digital asset financial services provider, has stepped up its support for the Stacks layer and the extension of Bitcoin capabilities.

Digital asset financial services provider BitGo has announced its integration with Stacks, a layer-1 blockchain network that extends the capabilities of Bitcoin (BTC). This initiative will enable all of BitGo’s clients to earn BTC directly within their wallets through a secure and efficient process.

As part of this integration, BitGo will now support the Stacks token standard and act as a network Signer, contributing to consensus and block production. This Signer role will be particularly essential for the future launch of sBTC, a decentralized Bitcoin-backed asset.

Upon its launch, sBTC will be created by users locking equivalent BTC in a Bitcoin blockchain script governed by the Signer network. The Signers will then mint sBTC and send the same to the Stacks address of the user. This newly minted sBTC can be used across layer-1 and layer-2 protocols to facilitate trades, decentralized applications, and other use cases.

Commenting on this development, Daniel Du, Senior Product Manager at BitGo, expressed support for Stacks in expanding their smart contract capabilities and decentralized applications. He highlighted BitGo’s commitment to providing regulated custody and stacking of STX.

The integration of Stacks with BitGo is a significant step in expanding the use cases and applications of Bitcoin. This initiative will enable a broader audience to participate in the Staking economy and contribute to the growth of the Bitcoin ecosystem.

The total value locked (TVL) in the Bitcoin layer ecosystem has seen a substantial increase since December 2023. As the industry continues to explore innovative ways to enhance the capabilities of BTC, the TVL has risen sevenfold, now exceeding $2.2 billion.

This growth can be attributed to the increasing popularity of layer-2 solutions, such as Stacks, that provide greater scalability, lower transaction fees, and the ability to build decentralized applications on Bitcoin.

According to Jonathan Sadlowe, General Partner at Gossamer Capital, this BitGo integration with the Stacks layer is an appreciable hallmark of approval for Bitcoin Layer 2 solutions. He highlighted the crucial importance of Bitcoin L2s in enabling the growth of applications on Bitcoin technology.

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