Starknet has rolled out native Bitcoin staking alongside a major $100 million incentive program aimed at accelerating the growth of the BTCFi ecosystem. The announcement signals a new chapter for integrating the world’s first cryptocurrency into decentralized finance on Layer 2.
Expanding Opportunities for Bitcoin Holders
For the first time, Bitcoin holders can stake their assets on Starknet without giving up custody, earning rewards while helping secure the network. According to the team, this represents the first native yield source for Bitcoin on any rollup solution.
CEO and StarkWare co-founder Eli Ben-Sasson highlighted the milestone:
“Last year I said Starknet would unlock Bitcoin’s potential. Today we’re delivering on that promise, benefiting Bitcoin owners without compromising trust. There’s real beauty in the first blockchain asset helping secure another decentralized network.”
The staking system leverages tokenized versions of Bitcoin — including WBTC, tBTC, Liquid Bitcoin, and SolvBTC — which can be delegated to Starknet alongside the native STRK token, approved through an August on-chain vote.
Backed by zk-STARK Security
The process relies on zk-STARK cryptography, providing post-quantum security and ensuring trustless protection for participants. Ben-Sasson emphasized Bitcoin’s unique role as collateral, pointing to both retail and institutional recognition:
“Bitcoin is the strongest form of collateral — from Michael Saylor to Wall Street, everyone understands this. But my vision is for you to borrow against BTC and reinvest those funds with confidence.”
Institutional Yield Fund Coming in October
As part of the broader initiative, Re7 Capital, managing over $1 billion in assets, will launch the Bitcoin Institutional Yield Fund on Starknet in October. While primarily targeting institutional investors, retail users will also gain access via tokenized shares distributed through MidasRWA.
Re7 founder and CIO Evgeny Gokhberg noted that the strategy focuses on “sustainable and secure Bitcoin growth using derivatives, DeFi opportunities, and staking within Starknet.”
Ecosystem Growth and Integrations
To expand accessibility, Starknet has integrated with XverseApp, the Hyperlane cross-chain protocol, and Bitcoin bridges from Atomiq Labs and Garden Finance. Additional integrations are expected soon, including LayerZero, BitGo, and Stargate Finance.
This multi-pronged effort aims to position Bitcoin as a core liquidity and collateral layer in the evolving DeFi landscape.
