According to the most recent information shared with Finbold on July 18, BitGo, a digital asset financial services platform, now supports the Stacks layer.
The incorporation not only expands BitGo’s ecosystem but also provides clients with the opportunity to earn Bitcoin (BTC) rewards. Additionally, it enhances BTC capabilities by incorporating delegate and isolated compounding features.
BitGo users are now able to generate BTC rewards directly in their wallets without the need for lending or additional risk through compounding.
Furthermore, BitGo has expanded its product line by incorporating the Stacks token standard. Bitgo’s function as a “signer” on the network is a critical element of the integration, as it contributes to blockchain consensus and block production.
BitGo will become a member of the Signer network, which will enable deposits and withdrawals, upon the introduction of sBTC, a decentralized 1:1 Bitcoin-backed asset designed to enhance the programmability of Bitcoin.
Signers such as BitGo facilitate the conversion between BTC and sBTC across the Bitcoin L1 and L2 layers. In order to generate sBTC, users may deposit an equivalent quantity of BTC into a Bitcoin blockchain script that is under the control of the Signer network.
After minting sBTC, the Signers transfer it to the user’s Stacks address. In contrast, users must initiate a peg-out transaction to convert sBTC back to BTC. Signers then execute this transaction by transmitting BTC to the user’s BTC address.
The Bitcoin layer ecosystem has experienced unprecedented development as the industry investigates the potential of the Bitcoin economy.
The Bitcoin ecosystem’s total value locked (TVL) has increased by sevenfold to exceed $2.2 billion since December 2023.
A growing number of developers are seeking efficient methods to construct upon the most established blockchain in the world.
As a result, Bitcoin L2s and other scaling solutions provide developers with the security and market potential of Bitcoin without modifying the original cryptocurrency.
In the interim, institutions and investors are intensifying their involvement in the development of Bitcoin. Direct investments in teams such as Xverse, Hermetica, and Bitflow are causing some investors to increase their allocations to Bitcoin-based initiatives.
Outlier Ventures and Bitcoin Frontier Fund, among others, have implemented accelerator programs to assist teams that are Bitcoin-based.
The institutional sector is experiencing a surge in interest in Bitcoin ETFs (exchange-traded funds), which is generating new capital and fostering a new generation of Bitcoin developers who can rely on the Stacks layer’s scalability to facilitate secure transactions and high speed.
The emergence of Bitcoin L2s will be advantageous to Bitcoin holders who are hesitant to participate in decentralized finance (DeFi) due to the perceived security risks associated with Proof-of-Stake (Pos) systems and less-proven L1s.
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