Bitcoin has officially become part of Starknet’s security model as the Ethereum layer-2 (L2) network launched Bitcoin staking on Tuesday. The rollout allows users to delegate Bitcoin directly to the network and earn rewards.
According to the announcement blog, this marks the first time Starknet has tied its security to Bitcoin while enabling holders to unlock new sources of yield. Previously, users could only stake the network’s native STRK token.
This move is changing how Bitcoin can work in decentralized finance (DeFi). As the largest cryptocurrency, Bitcoin just sat as digital gold, valuable but idle from the broader DeFi landscape. However, Starknet’s developers believe BTCFi, short for Bitcoin finance, will flip that story by making Bitcoin more useful and productive.
Eli Ben-Sasson, CEO of StarkWare, emphasized that “the path has been clear” since the 2024 announcement to scale Bitcoin through zero-knowledge technology.
A push for BTCFi adoption
In an X thread, Starknet said it’s backing its Bitcoin vision with strong incentives. The Starknet Foundation unveiled a 100 million STRK program to accelerate BTCFi adoption.
The initiative, called “BTCFi Season,” will fund lending markets, stablecoin borrowing, and liquidity across key protocols such as Ekubo and Troves. Consequently, the network aims to make borrowing against Bitcoin cheaper than anywhere else in the ecosystem.
Additionally, Starknet has onboarded Re7 Labs as a core contributor. Re7, with over $1 billion in assets under management (AuM), is introducing an institutional Bitcoin yield fund. Retail users will access it through MidasRWA, a tokenized version on Starknet. At the same time, Re7 is rolling out a new trading system on Ekubo. It helps the movement of money more efficiently between Bitcoin, ETH, STRK, and stablecoins.
Expanding access and connectivity
Starknet is also making it easier for people to connect with its Bitcoin ecosystem. It now works with tools like the Xverse wallet, Hyperlane, and Bitcoin bridges from Atomiq Labs and Garden Finance.
Additionally, new partnerships with LayerZero, BitGo, and Stargate Finance will help expand access even further. These updates will allow both regular users and big institutions to easily join Starknet’s Bitcoin network.
Starknet’s BTCFi rollout transforms Bitcoin from a passive store of value into an active yield-bearing asset within DeFi. Following the news, Starknet’s native token STRK spiked nearly 8% and traded at $0.13 at press time.
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